26 April 2012 09:38 [Source: ICIS news]
SINGAPORE (ICIS)--Spot epichlorohydrin (ECH) prices in ?xml:namespace>
However, the trajectory then took a sudden turn and plunged from mid-March. Besides the obvious gloomy downstream demand, some producers' deliberate control was another major contributing factor, market players said.
A leading ECH producer, Shandong Haili Chemical, slashed its offer from CNY 15,000/tonne to 11,300/tonne
Such moves were an evident signal of the producer’s strategy, aiming at suppressing other ECH manufacturers, especially Wudi Xinyue Chemical, the second biggest producer which had reconverted its 65,000 tonne/year propylene oxide (PO) units back to ECH in March, market players said.
The major producer stopped reducing its offer and suspended taking orders last week starting mid-April. Market players said the reason might be that the producer had too many lower-priced orders to be fulfilled and an 80,000 tonne/year unit unexpectedly shut down due to a power plant problem.
Such news effectively eased the oversupply situation and stimulated some buying interest, another market player said.
Spot prices were steadily pushed up to CNY11,800-12,000/tonne
Most market players expected a further increase in May, the market player said.
($1 = CNY6.31)
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