06 March 2012 06:25 [Source: ICIS news]
By Trisha Huang
MELBOURNE (ICIS)--Spot methyl isobutyl ketone (MIBK) prices in ?xml:namespace>
Prices of spot cargoes into China rose to about $1,760/tonne (€1,338/tonne) CFR (cost and freight)
Regional MIBK producers have been hiking prices to keep up with a steady increase in their feedstock costs.
Tight supply in the domestic Chinese market and a further strengthening in the prices of feedstock acetone have lent support to regional MIBK makers’ progressively higher price targets.
Fresh offers from
“MIBK may reach $1,770-1,780/tonne CFR China in the near term. However, we foresee buyer resistance to prices above $1,800/tonne CFR China,” a trader said.
Upstream acetone prices on a zero antidumping duty (ADD) basis, while subject to a 5.5% import duty, have gained nearly 7% since early January to close at an average of $1,067.50/tonne CFR China for the week ended 2 March, ICIS data showed.
Supply of MIBK in the Chinese market, which imported just over 20,000 tonnes in 2011, has tightened because of the prolonged shutdown of a 20,000 tonne/year MIBK plant at Taizhou in
“Supply has been tight for several weeks,” said a Chinese end-user. “We’re running our production at full tilt and have to supplement [our MIBK feedstock] with spot import.”
Domestic Chinese MIBK prices increased to (yuan) CNY14,100-14,200/tonne EXW in east
“I would not say prices are going up because of strong demand,” said a Chinese MIBK maker.
“MIBK prices have risen really because acetone prices have been strengthening, and [the extended shutdown of the Taizhou plant] has curbed supply.”
Consumption of MIBK by the key rubber chemical and tyre sector, which accounts for 40% of
However, demand for MIBK from the automotive, shipping and furniture coating industries remains slower than expected, the producers said.
Meanwhile, scheduled turnarounds at two regional MIBK plants are expected to exacerbate the tight supply in
Kyowa Hakko Chemical’s 15,000 tonne/year MIBK plant in
“We expect [MIBK] prices to continue going up this month, and possibly into April, because there are no indications that the current supply-demand situation will change in the near term,” a second Chinese MIBK manufacturer said.
($1 = €0.76)
Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections
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