Sinopec seeks lower PTA price for Sept, rolls over MEG

31 August 2009 16:54  [Source: ICIS news]

SINGAPORE (ICIS news)--Sinopec has proposed selling its purified terephthalic acid (PTA) and monoethylene glycol (MEG) for September delivery within the Chinese domestic market at lower and rollover prices, respectively, compared with the previous month, company officials said Monday.

For PTA, the supplier proposed a September price of yuan (CNY) 8,000/tonne delivered, CNY200/tonne lower than the August final price.

For MEG, Sinopec’s proposed September price was a rollover from its August final number of CNY6,350/tonne delivered.

Some of Sinopec’s customers expressed surprise over its PTA price, as other leading producers, such as Xiang Lu Petrochemical and Yisheng Petrochemical, had last week proposed selling September volumes at CNY7,900/tonne delivered.

“For the MEG price, it’s within expectations, but you know, a proposed price is just tentative, we’d still have to see how the market develops at the end of the month,” said a source from Yixing Ming Yang Polyester, one of Sinopec’s customers for the fibre intermediates.

Sinopec is China’s largest supplier of the two polyester raw materials. It has a stranglehold over the MEG market, but its share in the PTA domestic market had been eroded by new entrants in recent years.

Freya Tang and Clytze Yan of CBI China contributed to this article.

($1 = CNY 6.83)

For more on Sinopec visit ICIS company intelligence
For more on PTA and MEG visit ICIS chemical intelligence
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By: Salmon Aidan Lee
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