08 November 2010 04:50 [Source: ICIS news]
SINGAPORE (ICIS)--Asia purified terephthalic acid (PTA) spot prices soared by $100/tonne (€71/tonne) on Monday morning in tandem with strong gains in the futures market leading to a trading halt at Zhengzhou Commodity Exchange on third day in a row, market sources said.
Offers for spot PTA jumped sharply to $1,280-1,300/tonne CFR (cost and freight) China Main Port (CMP), up by $100/tonne from last Friday, against buying indications at $1,260/tonne CFR CMP, said traders.
Asia PTA prices had never exceeded $1,200/tonne CFR CMP since ICIS kept records from 2002.
Continuous bullishness triggered by the worries over China’s inflation coupled with strong market fundamentals in PTA, pushed up the PTA futures on the Zhengzhou Commodity Exchange to yuan (CNY) 10,582/tonne ($1,589/tonne), hitting a cap of 6% on daily swings in values and thus forcing a halt to trading, market sources said.
In the Chinese domestic spot market, trades at CNY10,600-10,700/tonne ex-warehouse were reported, registering a steep surge of CNY900-1,100/tonne from last Friday. The import parities of the domestic prices were around $1,280-1,290/tonne CFR CMP, according to ICIS.
Bullish sentiment also spilled over to co-feedstock monoethylene glycol (MEG). Offers surged to $1,130-1,150/tonne CFR CMP on Monday morning, $70/tonne higher than Friday close.
($1 = €0.71 / $1 = CNY6.66)
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