21 July 2011 08:48 [Source: ICIS news]
SINGAPORE (ICIS)--Chinese oxo-alcohol majors Jilin Petrochemical and Tianjin Soda Petrochemical have raised their domestic prices of 2-ethylhexanol (2-EH) by yuan (CNY) 200/tonne (US$31/tonne) and CNY150/tonne respectively, market sources said on Thursday.
This follows Qilu Petrochemical’s announcement that it had raised its 2-EH domestic list prices by CNY150/tonne on 20 July.
The price hikes are largely driven by tight supply in the local market amid ongoing scheduled turnarounds, the sources said.
Jilin’s new 2-EH list prices, effective 20 July, were revised to CNY14,300-14,500/tonne ex-tank, excluding taxes.
Meanwhile, Tianjin Soda’s prices are at CNY14,350-14,550/tonne ex-tank, excluding taxes, with effect from 20 July.
The producers’ announcements drew mixed reactions from the market.
Regional suppliers welcomed the higher prices, citing a snug supply because of planned and unplanned shutdowns in the region, including an outage at Nan Ya Plastics 2-EH facility since 12 May.
Meanwhile, end-users said the higher prices are unacceptable as the downstream dioctyl phthalate (DOP) sector is performing poorly.
Many DOP producers have been forced to cut their production rates to 40-50% as a result of mounting losses and rising cost pressures.
In Asia, 2-EH prices rose by $5-40/tonne (€4-28/tonne) week on week to $1,880-2,015/tonne CFR (cost & freight) East Asia. DOP prices were assessed lower by $20/tonne to settle at $1,770-1,800/tonne CFR East Asia for the week ending 15 July, according to ICIS.
($1 = CNY6.46, $1 = €0.70)
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