04 October 2010 10:08 [Source: ICIS news]
SINGAPORE (ICIS news)--Asia’s major toluene di-isocyanate (TDI) producers have raised their October contract price nominations to $2,700/tonne (€1,944/tonne) CFR (cost & freight) CMP (China Main Port)/Hong Kong, in line with firm Chinese domestic spot values, industry sources said on Monday.
BASF’s October contract offers were up $200–300/tonne from its September settlements, while Mitsui Chemicals’ October nomination was $150–250/tonne higher than its settlement price for the previous month, they said.
“Import prices have been lagging behind the domestic numbers. If we calculate the import parity, TDI prices would be at $2,700/tonne CFR. That’s the key reason why we have raised our offers for October,” said a source from BASF.
“Transport restrictions ahead of the Asian Games have messed up the supply-demand balance in Hong Kong and mainland China,” said a Hong Kong-based trader.
China usually restricts transportation of dangerous chemicals when hosting major international events like the upcoming Asian Games 2010 that will be held in Guangzhou in November.
Some buyers said they expect the market to remain strong, while others were uncertain on the price outlook until after the holidays in China, the trader said.
The Chinese market is currently closed for the week-long National Day holidays until 8 October.
Meanwhile, spot TDI prices in China were heard at $2,550–2,650/tonne CFR Hong Kong on Monday, market sources said. The numbers were up $30–100/tonne from pre-holiday numbers, based on ICIS data.
($1 = €0.72)
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