28 June 2012 08:53 [Source: ICIS news]
By Jasmine Khoo
The producer quoted falling domestic feedstock propylene costs and weak downstream demand as reasons for the decrease in prices, market participants said.
Shandong Haili Chemical declined to comment.
The decline in Chinese domestic ECH prices has caught the regional sellers outside of
The majority of these producers and traders were unwilling to drop their offers and want to sell the material at $1,850/tonne CFR (cost & freight) China Main Port (CMP) and above, mainly due to feedstock propylene cost pressure.
Propylene prices in northeast Asia were largely stable at $1,230-1,270/tonne CFR northeast (NE)
Most of these ECH sellers have turned their attention away from the
‘It is very hard to sell into
Transactions for cargoes going into
The deals were done at $1,800/tonne CFR China for June-loading cargoes of 100, 300 and 400 tonnes, according to the regional producer.
‘[The price of] $1,800/tonne CFR China price is too low,’ said another northeast Asia-based producer, adding that this price level will compromise its profit margins and sales targets. Other producers voiced similar sentiments and maintained their offers at above $1,850/tonne CFR China.
Meanwhile, ECH import data from China Customs showed that 10 out of 16 ECH importers in April stopped importing ECH in May.
These 10 companies imported approximately 2,160 tonnes of ECH in April, the data showed.
In addition, the companies that continued to import ECH in May reduced their import volumes, according to the data.
With the Chinese domestic ECH price downtrend showing no signs of rebound, the Chinese import market activity is likely to remain subdued for the time being, according to industry sources.
($1 = CNY6.36)
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