30 September 2011 07:11 [Source: ICIS news]
By Liu Xin
BPA prices tumbled by an average of $500/tonne from a record high in early May to $1,980-2,050/tonne (€1,465-1,517/tonne) CFR (cost and freight) China in the week ended 23 September, according to ICIS data.
“The record-high import volumes in August and falling feedstock phenol prices have triggered some panic-selling,” a Chinese trader said.
Amid uncertainty in the price outlook and tight cash flow, Chinese traders cut their prices to offload cargoes.
Chinese domestic prices have plunged by more than yuan (CNY) 1,000/tonne ($156/tonne) week on week to CNY15,600-15,700/tonne EXWH (ex-warehouse) on 30 September, market sources said.
Buying interest for imported material is muted amid the global economic uncertainty. Deals and discussions this week were heard at around $1,900/tonne CFR China, down 6% week on week, market sources said.
Concerns over the weakening global economic conditions, as well as the volatile crude prices, may trigger another round of panic selling of BPA, market sources said.
Buyers from these sectors are keeping to the sidelines as they expect prices to come down further in the coming weeks.
“Trade was slow as end-users are not stocking up BPA for the upcoming National Day holidays,” an eastern
The Chinese market will be closed for the week-long National Day celebration on 1-7 October.
BPA supply, meanwhile, will be boosted as regional facilities either restart operations or ramp up production towards October.
Shanghai Sinopec Mitsui Chemicals (SSMC) resumed full production at its 120,000 tonne/year BPA facility at Caojing after running the plant at 80% of capacity for two weeks, market sources said.
($1 = €0.74 / $1 = CNY6.40)
Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections
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