25 October 2011 06:00 [Source: ICIS news]
By Quintella Koh
SINGAPORE (ICIS)--Asian butanediol (BDO) prices on a bulk basis have declined by $300-400/tonne (€216-288/tonne) this week because of weak demand from the polyurethane (PU) segment, several market sources said on Tuesday.
A European producer said it is willing to lower its offers of bulk BDO to $3,000/tonne CFR (cost & freight) China. On 18 October, bulk BDO was assessed at $3,300-3,400/tonne CFR CMP (China Main Port), according to data from ICIS.
“The buying sentiment is practically non-existent from the PU sector,” the producer said, adding that this is an unusual situation as PU demand is usually strong at the start of the fourth quarter, when PU producers stock up on BDO for the manufacture of shoe soles.
The production of shoes typically reaches it peak during this period as manufacturers increase their production for the Christmas and Lunar New Year holiday seasons.
Some Chinese shoe manufacturers, most of which are located at ?xml:namespace>
The credit crunch is result of the government’s attempt to curb inflation by tightening its monetary policy,
In addition, the
Some companies were heard to have taken on loans with interest rates at as high as 70%, according to market sources.
A spokesman for the
“Despite all these public measures announced by the government to help
“My customers are still not buying and several are not contactable,” the producer added. Other northeast Asian BDO producers said they were also experiencing the same.
“The situation appears dire as we have not been able to sell any spot cargoes for the last two weeks,” a northeast Asian producer said.
A Chinese buyer said the BDO prices are likely to decline further in the coming weeks as supply increases with the restart at several regional plants.
BASF PETRONAS Chemicals is planning to restart its 100,000 tonne/year BDO plant at Gebang in
($1 = €0.72)
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