Europe ECH exports drop 45% on poor demand

19 February 2013 17:01  [Source: ICIS news]

LONDON (ICIS)--Epichlorohydrin (ECH) exports from the EU to the rest of the world dropped by 45% in November 2012 compared with the same month a year  earlier, Eurostat data showed on Tuesday.

One European ECH producer said that this is because Asian demand is poor and the Asian market is oversupplied, so there is less need for European-origin material there. 

Another reason is that Belgium-based Solvay opened a 100,000 tonne/year ECH plant in Map Ta Phut, Thailand, in February 2012 and so it does not need to supply as much ECH to that region from its European plant anymore, a source said. 

In addition, prices in Asia are not as attractive to justify exports. 

February ECH prices in Europe are €1,610-1,640/tonne ($2,147-2,187/tonne) free delivered (FD) northwest Europe (NWE), while in Asia they are $1,480-1,550/tonne cost and freight (CFR) China Main Port.

EU ECH exports (units: tonnes)

Source: Eurostat

Exports

 

 

Oct. 2011

6112

Nov. 2011

5085

Jan.-Dec. 2011

61234

Oct. 2012

2677

Nov. 2012

2773

 

 

Total Jan-Nov 2012

56357

change year on year

-45%

change month on month

+4%


($1 = €0.75) 

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By: Janos Gal
+44 208 652 3214



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