Chinese makers hike May PTA by $44/t on firm demand

26 May 2009 02:43  [Source: ICIS news]

SINGAPORE (ICIS news)--Leading purified terephthalic acid (PTA) producers in the Chinese domestic market have finalised their May contract price yuan (CNY) 300/tonne ($44/tonne) higher than the previous month, said buyers and sellers, citing firm demand and tight supply.

Xiang Lu Petrochemical announced its May price at CNY7,600/tonne delivered (DEL) Monday, in line with the price of market leader, Sinopec.

Rival producers, Yisheng Petrochemical, BP Zhuhai and Zhejiang Yuan Dong Petrochemical similarly  announced their May price at CNY7,600/tonne DEL through Monday evening and Tuesday morning.

The April contract price among the five was CNY7,300/tonne DEL.

“We’ve seen generally firm demand over the past one month and we actually did not have enough to sell,” said a source from Xiang Lu.

The five PTA majors dominate more than 50% of the market share in the Chinese domestic market according to sources. Other PTA makers in China include Ningbo Mitsubishi Chemical and Liaoyang Petrochemical which do not announce a final monthly price.

Freya Tang of CBI China contributed to this article.

($1 = CNY6.82)

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By: Salmon Aidan Lee
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