07 April 2011 09:20 [Source: ICIS news]
By Liu Xin
Spot prices were stagnant at $3,250-3,350/tonne (€2,275-2,345/tonne) CIF (cost, insurance and freight)
“We were earlier targeting moderate price increase of $30-50/tonne in April, but it is very difficult to implement any price increase and we are trying to maintain our prices,” said a regional producer.
Downstream demand in
“PC prices may have peaked following their recent hikes,” said a trader. “We are expecting some downward correction given ample supply and soft demand,” he added.
Spot PC prices had gained $150-200/tonne since mid-February, buoyed by rising feedstock bisphenol A (BPA) values and the expectations of tighter supply and firm raw material costs following the massive earthquake that hit
Mitsubishi Engineering Plastics shut its 110,000 tonne/year PC facility in Kashima, but is keeping its 60,000 tonne/year PC unit in Kurosaki running after the earthquake, sources said.
Idemitsu Kosan’s 47,000 tonne/year PC plant in
The power restrictions in
Meanwhile, the recent start-up of a Middle East-based 65,000 tonne/year optical-grade PC plant was expected to exert some downward pressure on spot values when cargoes arrive in
“PC prices look set to fall in April, but prevailing high BPA costs and lean margins would prevent any drastic declines,” said a regional trader.
Asian BPA spot prices were steady at $2,480-2,520/tonne CFR NE Asia on 25 March following the recent rally on the back of tight supply, according to ICIS data.
The spread between BPA and PC had narrowed to $600-800/tonnes, which was considered unhealthy by industry players. They prefer the spread to be over $800/tonne.
PC is a type of high specification engineering plastic, suitable for moulding and with a high resistance. Typical applications include automobiles, CDs and DVDs, electronic casings, returnable milk bottles, lighting and greenhouses.
($1 = €0.70)
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