29 September 2008 04:24 [Source: ICIS news]
SINGAPORE (ICIS news)--China’s five largest domestic suppliers of purified terephthalic acid (PTA) have slashed September contract prices by 16.2% or yuan (CNY)1,450/tonne ($211) to CNY 7,500/tonne from August due to poor demand, buyers and sellers said on Monday.
State-run Sinopec, Xiang Lu Petrochemical, Hualian Sunshine Petrochemical, Yisheng Petrochemical and BP Zhuhai finalized their September price for the domestic market just before the start of the Chinese National Day holidays, which starts 29 September, market sources said.
The August settlement was at CNY 8,950/tonne.
“The price drop is in line with spot levels sold, and spot prices were around CNY7,100/tonne ex-warehouse now anyway,” said a Jiangsu-based customer, who blamed poor demand and the fundamental oversupply in the market for the weakness in prices.
Sinopec and BP Zhuhai sources would not confirm the final price, but officials from the other three companies confirmed the CNY7,500/tonne number late last Friday.
The five companies together supply more than half of PTA made in ?xml:namespace>
($1 = CNY6.87)
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