31 August 2011 05:13 [Source: ICIS news]
By Wong Lei Lei
PG producers’ attempt to hike prices is being met with strong resistance from buyers, they said.
Spot prices for industrial grade PG (PGI) in northeast (NE) Asia and southeast (SE) Asia have held steady throughout August at $1,750-1,800/tonne (€1,208-1,242/tonne) CFR (cost and freight) SE/NE Asia basis, while PO prices rose by more than $100/tonne from end-July to $2,030-2,090/tonne CFR China on 26 August, according to ICIS.
Bearish demand in the downstream sector capped PG prices’ movement.
Production at the unsaturated polyester resins (UPR) industry - the main PGI consumer in China and most parts of Asia – has stayed low since June, translating to much lower demand for PGI, market sources said. UPR is used in the manufacture of fibreglass.
“The unsaturated polyester resins [plants in
Margins have been squeezed so thin for PGI producers, that a major north Asian maker stopped producing the material.
“PGI prices are so low now even though
The producer is currently limiting itself to producing pharmaceutical grade PG (PG USP), which continues to enjoy good demand.
“The PG USP demand from buyers is steady, despite the current weak global economy and lacklustre PGI market, as PG USP is used in the food and pharmaceutical sectors that have relatively stable demands,” said another producer.
PG USP spot prices were assessed at $2,050-2,100/tonne CFR NE Asia, largely unchanged for the whole of August, according to ICIS.
($1 = €0.69)
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