E China ECH falls CNY200-550/t on good supply

31 July 2008 12:16  [Source: ICIS news]

SHANGHAI (ICIS news)--Epichlorohydrin (ECH) prices in east China have fallen by yuan (CNY) 200-550/tonne ($29-81/tonne) on high inventories since the end of last week, traders said on Thursday.

ECH prices were currently assessed at CNY13,450-13,800/tonne ex-warehouse (EXWH) in east China, they added

Supply outstripped demand as some major producers had been operating at full rates for a long period and the high inventories were forcing producers to cut offers, a producer said.

Most traders delayed purchases due to weak demand from the downstream epoxy resins sector, which was operating at 30-50% capacity in Huangshan area, sources said.

Some producers said that they would continue to suffer losses as long as cargoes were sold below CNY14,000/tonne.

ECH was also weighed down by the fall in feedstock propylene prices which was below CNY12,000/tonne.

Market participants said the ECH prices would recover only if major producers reduced operating rates, failing which, values could fall further.

Jenny Yi from CBI contributed to this article

($1=CNY6.83)

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By: Amanda Zhang
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