30 June 2010 09:39 [Source: ICIS news]
By Ong Sheau Ling
SINGAPORE (ICIS news)--Spot propylene oxide (PO) prices in east China continued to slump on a deluge of material coming from Ningbo ZRCC Lyondell Chemical (NZLC), worrying northern suppliers about a possible loss of market share, market sources said on Wednesday.
East China PO prices at yuan (CNY) 10,500/tonne ($1,544/tonne) based on an NZLC offer on Tuesday, remained below north China material, which were priced at CNY10,900-11,200/tonne DEL (delivered).
“We can’t see the prices bottoming out [in the near term]. Seriously, my buying idea will get lower as the days pass,” said a buyer.
For the first time on record, east China PO values slipped below northern prices in the week ending 25 June, according to ICIS data, traced back to the shipping of the first NZLC material.
“This threatens our sales in the east. We have our [manufacturing] costs and we can’t offer at such competitive prices [as compared to NZLC’s],” said a source from Tianjin Dagu.
NZLC started trial sales of on-spec ?xml:namespace>
The company owns a facility at
“At this rate, we may lose our market share in the east,” a source from Jinhua Chemical said, adding that upstream propylene and chlorine prices had been relatively stable, but
Asian PO prices declined by about 20% in the past three months, based on ICIS data.
NZLC is a joint venture between Sinopec subsidiary Zhenhai Refining and Chemical Co (ZRCC) and LyondellBasell.
Eastern China PO is typically priced higher when obtained from northern
“This is the first time in history that east
Other PO producers that supply to eastern
“At the moment, for Middle East material, we were told by the supplier that there is room for negotiation of prices at $1,300/tonne (€1,066/tonne) CFR (cost & freight)
“A Singapore-based maker has started to make adjustment to their PO sales, as the
However, NZLC’s customers said that a portion of the company’s products had high water content, due to poor storage means at its warehouse.
“Flexible polyether polyols slabstocks makers [such as my company] can’t accept such material. Perhaps rigid producers can still use the
($1 = €0.82/$1 = CNY6.80)
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