16 November 2010 04:46 [Source: ICIS news]
By Ong Sheau Ling
The prices were expected to move in tandem with the strong values of upstream propylene and downstream polyols, they said.
Spot PO discussions were heard at above yuan (CNY) 14,500/tonne ($2,180/tonne)
This followed an 11% surge in October prices as more polyols makers rushed to buy raw materials to ramp up production.
Flexible grade polyols, which go into making of foams, were in strong demand but supply was short because a major domestic producer, CNOOC & Shell Petrochemical Co (CSPC) had switched to producing high-resilience grade and polymer grade polyols (POP) at its 135,000 tonne/year plant in Huizhou,
Meanwhile, domestic supply of raw material
A 10-day outage at PetroRabigh’s 200,000 tonne/year PO plant in
The plant was restarted on 5 November but has yet to ramp up production, sources close to the company said.
“There are less Middle East cargoes coming in since October,” said a Chinese trader, adding that there would be no
Even from southeast Asia, spot PO shipments into
Southeast Asian material for end-November arrival was transacted at $1,690/tonne (€1,234/tonne) CFR (cost and freight) China last week, and the producer that made the sale had no more cargoes left for the month, they said.
Partially making up for the slack of imported PO supply in China,
The Japanese lots were heard sold at $1,660-1,700/tonne CFR
Meanwhile, PO producers said they continued to receive a great deal of buying inquiries from polyols makers and that the latter were willing to pay higher prices for the material due to a healthy spread between
“The current spread of more than CNY1,500/tonne between
“Polyols prices have been [spiking] in an exponential manner due to tight supply from CSPC. There is still room for polyols makers to raise their buying ideas,” a Shandong-based
Spot price discussions in the Chinese domestic polyether polyols market were in the high CNY15,000/tonne levels to low CNY16,000/tonne
“PO prices are really high now, we are just concerned [that] prices might just slump if the demand turned sluggish,” said a
($1 = CNY6.65 / $1 = €0.73)Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections
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