China's butyl glycol import prices rise before national holiday

27 September 2012 05:55  [Source: ICIS news]

SINGAPORE (ICIS)--Butyl glycol’s import prices in China rose on the back of higher production cost despite subdued trade ahead of the country’s National Day holiday in early October, market sources said on Thursday.

Prices were assessed as $10-20/tonne (€7.80-15.60/tonne) higher at $1,650-1,700/tonne CFR (cost & freight) China during the week ended 26 September, according to data from ICIS

South Korean and Japanese suppliers increased their offers to around $1,700-1,720/tonne CFR China in line with the overall uptrend in the upstream olefin markets.

Buying indications hovered at the mid-$1,600s/tonne CFR China, with weak interest for October shipments as most have fulfilled their requirements in September.

Ethylene prices were assessed at $1,300-1,350/tonne CFR northeast (NE) Asia at midday in Asian trade on Thursday, while propylene prices were at $1,380-1,390/tonne CFR NE Asia during the same session.

Butyl glycol prices rose despite the slowdown in market activity ahead of China’s National Day holiday in the first week of October.

“Sellers have no choice but to raise their prices because of high production costs and they are likely to maintain these levels even after the holiday,” a trader said.

According to another source, demand is expected to return slowly after the holiday season as customers would have utilised some of their current stock.

“In addition, there have been fewer US and European cargoes offered to China as the supply-demand balance in the two regions has recovered slightly.

“This means less deep-sea material will be dumped into China and the government may want to reconsider its anti-dumping duty (ADD) policy,” another trader added.

China has implemented a temporary ADD  on US and Europe-origin butyl glycol cargoes after conducting almost a year-long investigation on the dumping activities by suppliers in the two regions.

($1 = €0.78)

By: Andrea Heng
+65 6780 4359

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