China’s heavy aromatics supply to ease in Dec on lower demand

02 December 2011 09:14  [Source: ICIS news]

SINGAPORE (ICIS)--The tight supply of heavy aromatics in China is expected to ease and prices are expected to stabilise in December as demand softens, industry sources said on Friday.

Heavy aromatics supply, primarily that of C9, C10 and C11, was tight in November on robust demand and prices rose as a result.

The prices of C9 increased by around 10% to yuan (CNY) 6,650-6,750/tonne ($1,044-1,060/tonne) on 1 December from early November, according to C1 Energy, an ICIS service in China.

The increase was driven by strong demand, particularly from diesel blenders, traders said.

However, the diesel market is expected to cool down this month, as production and imports are rising and demand usually falls in winter, they said.

Meanwhile, heavy aromatics demand from resin producers is weakening in December as the low season begins and producers cut the operating rates at their plants.

($1 = CNY6.37)

Additional reporting by Fanny Zhang

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By: Julia Zhu

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