23 September 2008 06:30 [Source: ICIS news]
By Helen Lee
SINGAPORE (ICIS news)--China acetic acid remains flat and spot offers have fallen $10-30/tonne despite last week’s restart of some derivative plants in northern China on weak demand and poor economics in the upstream and downstream sectors, producers said on Tuesday.
“In actual fact, production in the downstream industries had resumed since last week…but acetic acid demand and price direction are not clearly up,” a Jiangsu-based acetic acid producer said in Mandarin.
Market sources said six monochloroacetic acid (MCA) factories out of 20 such plants in northern ?xml:namespace>
Spot acetic acid shed $10-30/tonne to $580-610/tonne CFR (cost and freight) northeast (NE) Asia at close of business last Friday due to lower offers into
Softening upstream methanol values, as well as falling prices of acetic acid downstream products also weighed on market sentiment, local traders and producers said.
The global financial turmoil and plunging prices of most other raw materials further soured sentiment, prompting a key acetic acid producer in eastern China to abandon plans to raise domestic prices last week.
The price hike would have been the second consecutive increase this month that would reverse the three month-long price downtrend.
Ex-tank transactions in eastern
“Some downstream product prices have fallen so acetic acid values may remain flat for some time,” he added.
Global supply concerns also emerged as global producer Celanese’s 1.2m tonne/year plant at
A market source in the
($1 = CNY6.83)
($1 = CNY6.83)
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