China polyols imports rise $130-150/t on supply

05 June 2008 04:20  [Source: ICIS news]

SINGAPORE (ICIS news)--Flexible slabstock polyols prices rose 8-9% in China this week on strong sentiment spurred on by tight supply and rising feedstock propylene and propylene oxide costs, regional traders and sellers said on Thursday.

Prices of imported bulk flexible slablstock polyols in China were assessed at $1,850-1,900/tonne on a delivered (DEL) basis for the week ended Wednesday, $130-150/tonne higher from last week, according to global chemical market intelligence service ICIS pricing.

Flexible slabstock in the China domestic market was trading this week at yuan (CNY) 15,450-16,200/tonne ($2,226-2,334/tonne) DEL, CNY300-850/tonne higher than last week.

Asian buyers had been experiencing shortages in the recent weeks as some key international and regional producers cut supplies of base flexible slablstock polyols to the region due to persistently low margins, regional buyers said.

The general anxiety over shrinking availability amid rising costs was exacerbated after Chinese petrochemical major, Sinopec, announced that it would cut petrochemical production to increase its fuel output, regional traders said.

“The costs of feedstocks such as propylene and propylene oxide are expected to rise further in China as a result of Sinopec’s plans to cut petrochemical production,” a regional trader said.

Prices in other parts of Asia also strengthened as a result of the strong sentiment in China and the tight regional availability, regional buyers and sellers said.

Drummed and bulk flexible slablstock polyols were assessed $30-180/tonne higher at $1,800-1,980/tonne CFR (cost and freight) southeast Asia and at $1,950-2,000/tonne CFR (cost and freight) India, according to ICIS pricing.

Flexible slabstock polyols is a raw material for making polyurethane foams used in a wide range of industries such as furniture and automobile.

($1 = CNY6.94)

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By: Chow Bee Lin
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