China’s Sinopec settles April PTA contract at CNY9,000/tonne

24 April 2012 04:33  [Source: ICIS news]

SINGAPORE (ICIS)--Sinopec has settled its April purified terephthalic acid (PTA) contract at yuan (CNY) 9,000/tonne ($1,426/tonne), which is CNY150/tonne lower than its March contract, a company source said on Tuesday.

The price is on a DEL (delivered) basis and market players had expected it to be higher by CNY50-100/tonne, a market player said.

“Many players are still facing a loss [because] the selling [spot] prices are lower than the costs,” he added. The player said the exact cost of contracted cargoes, which excludes freight charges, interest and discounts, is CNY8,730/tonne.

The spot prices of PTA in east China were at CNY8,650-8,700/tonne EXW (ex-works) on 23 April, according to Chemease, an ICIS service in China.

The spot prices in the domestic market will remain stable in the near term, another market player said.

Other major PTA producers in China, including Yisheng Petrochemical, Xiang Lu Petrochemical, Zhejiang Yuan Dong Petrochemical, BP Zhuhai and Oriental Petrochemical, are expected to announce their April PTA contract prices in one or two days, an industry source said.

Sinopec settled its March contract at CNY9,150/tonne.

($1 = CNY6.31)

By: Thompson Qian

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