06 November 2008 03:55 [Source: ICIS news]
SINGAPORE (ICIS news)--Domestic acetic acid prices in China broke a three-month losing streak with a marginal gain following operating rate cuts and collective price increases by key producers, market participants said on Thursday.
Ex-tank transactions in eastern China were heard at yuan (CNY) 2,900-3,250/tonne ($424.60-475.84/tonne) on Thursday, up CNY100-150/tonne from levels seen last Friday.
Prior to November, ex-tank prices had plunged 58% from their late-June highs to lows of yuan (CNY) 2,800-3,100/tonne at the end of October. Some producers said such prices were the lowest in a decade.
Buyers had emerged to replenish inventories on the perception that acetic acid prices had hit rock bottom, traders and producers said.
However, there remained concerns that the price upswing was not sustainable given that demand still lagged behind due to fundamentally weak downstream industries.
Acetic acid inventories among most producers and traders also remained high, thus prompting more suppliers to plan plant shutdowns and further operating rate cuts in the near term.
Major acetic acid producers in Asia include Celanese, BP, CPDC, Shanghai Wujing, Jiangsu Sopo, Daicel Chemical Industries, Showa Denko and GNFC.
($1 = CNY6.83)
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