S Korea’s KP Chemical proposes $150/tonne price hike for Sept PIA

14 August 2012 10:03  [Source: ICIS news]

SINGAPORE (ICIS)--South Korea’s KP Chemical Corp has proposed a $150/tonne (€122/tonne) price increase in its purified isophthalic acid (PIA) offer prices, effective 1 September, citing high raw material costs, a company source said on Tuesday.

September PIA prices are being targeted at around $1,700-1,750/tonne CFR (cost & freight) China, mainly to pass on the recent spike in production costs, the source said.

Prices of feedstock mixed xylene have gone up to $1,260-1,280/tonne CFR NE (northeast) Asia in the week ended 10 August, up by $178/tonne or 16% over two months, according to ICIS.

Over the same period, PIA prices increased at a slower pace of around 9%.

This makes another round of price increase for PIA “inevitable”, the source said.

Expectations of tighter supply-and-demand balance in the PIA market will lend additional support to the prices, the source said.

KP Chemical, which is Asia’s largest PIA producer, plans to shut its 200,000 tonne/year PIA unit in Ulsan, South Korea, in September for maintenance but detailed schedule has yet to be firmed up, the source said.

PIA is used as a modifier in downstream polyethylene terephthalate (PET) bottle-grade resins and as an additive in unsaturated polyester resins (UPR), coatings and low melting fibre (LMF).

($1 = €0.81)

By: Becky Zhang
+65 6780 4359

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