Chinese butyl glycol import prices rise on bullish market

09 August 2012 07:56  [Source: ICIS news]

SINGAPORE (ICIS)--Import prices of butyl glycol (BG) in China rose during the week ended 8 August on the back of firmer selling indications and stronger feedstock prices, market players said on Thursday.

Prices rose by $50/tonne (€40.50/tonne) on a CFR (cost & freight) China basis, according to data from ICIS.

Sellers increased their offers to $1,650-1,670/tonne CFR China as a result of the preliminary 10-15% anti-dumping duties (ADDs) imposed on US and Europe-origin cargoes.

Buying ideas similarly rose to $1,620-1,630/tonne CFR China in line with the bullish market sentiment. No deals were concluded and few discussions were heard during the week.

 “US and European producers are considering offloading some of their surplus cargoes to southeast Asia instead to escape the ADD situation in China,” a northeast Asian trader said.

“However, inventory levels in southeast Asia are high and demand is weak,” the trader added.

Meanwhile, Japanese and South Korean producers are raising their prices to take advantage of the ADD situation.

Selling ideas quoted by Japanese and South Korean producers rose from the low $1,600s/tonne CFR China to almost $1,700/tonne CFR China on 8 August, according to ICIS data.

Despite that, both buyers and sellers are waiting at the sidelines for prices to stabilise and for the Chinese government to finalise the ADD rate imposed on cargoes.

“I believe some buyers will return to the market in the next 1-2 weeks as some of them will need to restock, so we will see some market activity soon,” another trader said.

($1 = €0.81)

By: Andrea Heng
+65 6780 4359

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