07 June 2010 11:28 [Source: ICIS news]
SINGAPORE (ICIS news)--Asia's two key toluene di-isocyanate (TDI) producers, BASF and Mitsui Chemicals, have nominated June contract prices at increases of $50-200/tonne (€42-168/tonne) from May, depending on customers, in spite of a soft spot market, sources said on Monday.
BASF proposed a June nomination price of $2,950/tonne CFR (cost and freight) China Main Port (CMP) /Hong Kong, up $50-100/tonne from May settlements, according to market sources.
Mitsui Chemical's June nomination price was $3,000/tonne CFR CMP/Hong Kong, an increase of $100-200/tonne from May, sources said.
May contracts were settled at $2,800-2,900/tonne CFR CMP/Hong Kong, down $200/tonne from April.
Producers held selling ideas high, although traders and distributors were heard selling cargoes in the spot market at below $2,800/tonne CFR CMP/Hong Kong.
“We believed that the slump in prices is temporary. TDI should stabilise,” said a producer.
A second producer said: “The lowest we can settle at is $2,900/tonne CFR CMP/Hong Kong, in order to break even, and we have considered our buyers’ position that demand is dwindling.”
China's traditional slow season in the downstream foam industry for bedding, furniture and automotive products is from June to August.
In the import market, spot prices on Monday were discussed at $2,750-2,800/tonne CFR Hong Kong, down $50/tonne from last week, as local traders were heard liquidating stocks ahead of the slow season.
On a CFR and CMP basis, discussions were mainly heard in the lower end of $2,750-2,850/tonne, market sources said.
($1 = €0.84)
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