24 March 2011 05:55 [Source: ICIS news]
By Ong Sheau Ling
Spot TDI prices were assessed $150/tonne higher on 23 March at $2,650–2,750/tonne (€1,882–1,953/tonne) CFR (cost & freight) China Main Port (CMP)/Hong Kong, from the previous week, ICIS data showed.
The 9.0-magnitude earthquake flattened towns and damaged chemicals facilities.
Many players in
“The lack of feedstock and logistics problems are immediate issues that we have to look into,” said a company source.
In the meantime, the producer would use its 120,000 tonne/year Ohmuta-based TDI unit, which was unaffected by the earthquake, to cover both its domestic and export needs, the source said.
Chinese producers withdrew their spot offers after the earthquake hit
“All that speculation is driving up prices,” said a trader in
However, a Guangzhou-based trader told ICIS that most of the fixtures were being made by traders.
“Foamers are just watching the market,” the trader added.
Nonetheless, TDI makers in
“Prices would continue to escalate in April,” said a source from a global TDI major.
Some players said they expect TDI prices to rise to $2,800/tonne CFR CMP/Hong Kong by the end of March or early April.
“A decrease in Mitsui Chemical’s material in the coming month will ease the persistent oversupply and give support to prices,” said a Korean TDI maker, referring to domestic supply being in surplus, which in turn was suppressing local price increases.
A source from Mitsui Chemical told ICIS that the producer’s March shipments will be delayed, but was unable to provide further details about its new schedule.
“We have received news that March allocations would be cut by 10–15% and we are unsure how much we will get in April,” said one of Mitsui Chemical’s customers based in south
However, some players disagreed that the earthquake and supply disruptions in
“There is no panic in the market yet. This is because there is still plenty of TDI, especially from local makers,” said a Shanghai-based trader.
($1 = €0.71)
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