12 August 2010 10:23 [Source: ICIS news]
SINGAPORE (ICIS)--State-run Chinese producers Qilu Petrochemical Co and Jilin Petrochemical Co have raised their prices of 2-ethylhexanol (2-EH) by yuan (CNY) 200/tonne ($29.50/tonne) on tight supply and spiralling production costs amid firmer prices for the feedstock propylene, market sources said on Thursday.
Qilu Petrochemical’s new list prices, effective from 10 August, were revised this week to CNY12,900-13,000/tonne ex-tank, excluding taxes, the sources said.
Jilin Petrochemical raised its prices to CNY12,700-12,900/tonne ex-tank, excluding taxes, according to the sources.
The producers’ price hikes drew mixed reactions from the market. Regional suppliers welcomed the higher values, citing a tighter-than-expected supply due to recent outages at Formosa Petrochemical Corp’s (FPC) refinery at Mailiao, Taiwan.
However, end-users said the higher prices were unacceptable, as the downstream dioctyl phthalate (DOP) sector was still performing poorly.
“This [price increase] doesn’t make any sense. We are already suffering from losses. We would have to shut the plant if the price continues to increase,” said a China-based end-user, who was speaking in Mandarin.
Prices of 2-EH in Asia rose by $70-90/tonne (€55-70/tonne) from the previous week to $1,570-1,620/tonne CFR (cost & freight) east Asia, while DOP prices were assessed at $1,530-1,560/tonne CFR east Asia for the week ended 6 August, ICIS data showed.
($1 = €0.78/$1 = CNY6.78)
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