07 February 2012 07:53 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Sinopec raised its domestic list prices of orthoxylene (OX) on Tuesday, on the back of higher spot prices and import values, market sources said.
Sales branches of Sinopec in east China raised their prices by yuan (CNY) 300/tonne ($48/tonne) on Tuesday, a company source said.
The hike brings the list prices of OX from Sinopec's Zhenhai Refining & Chemical Co (ZRCC) to CNY12,200/tonne and that of Sinopec’s Yangzi Petrochemical to CNY12,300/tonne, the source said.
Sinopec raised its prices, in line with a rise in spot OX values, because of increasing costs of feedstock mixed xylenes.
OX prices were at CNY12,700-12,800/tonne EXW (ex-works) on Tuesday, up by CNY600/tonne from CNY12,100-12,200/tonne EXW on 29 January, according to data from Chemease, an ICIS service in China.
Import prices of OX were at $1,650-1,670/tonne CFR (cost & freight) China on 3 February, up by $20-40/tonne from $1,610-1,650/tonne CFR China on 27 January, according to Chemease data. Import prices rose because of increasing prices of feedstock mixed xylenes (MX).
Higher OX prices may further dampen already eroded margins of phthalic anhydride (PA) producers, industry players said.
“The increasing OX prices will have an impact on downstream PA producers,” a market player said, “Current spot prices of PA in domestic market are lower than producers’ cost.”
Therefore, PA producers may run their plants at lower operating rates to reduce their losses, a PA producer said.
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