27 February 2013 15:04 [Source: ICIS news]
AMSTERDAM (ICIS)--China could soon become a net exporter of oxo-alcohols as new capacity comes online, a consultant said on Wednesday.
Angel Fernandez, of consulting firm Tecnon Orbichem, said oxo-alcohols imports to China were currently falling.
This was affecting countries such as Japan and South Korea, which had started to look to other markets such as India.
Speaking at the ICIS Oxo-Alcohols Conference, Fernandez said Russian exports to China were also being affected.
The question is whether China will be able to absorb its extra capacity downstream or become a net exporter, he added.
Adam Popov, CEO of Switzerland-based Avestra, said Russia’s oxo-alcohols capacity was mainly based on old technology that needed updating, and the country has weak domestic demand.
China bought Russian oxo-alcohols and Russia would need to sell material below Chinese prices to get sales as China increased its capacities, he added.
Jennifer Marchi, international product manager at marketing and trading company Cedar Petrochemicals, said most US capacity was used in the domestic market.
Most domestic customers had a good 2012 and the economy was recovering, with automotives and construction improving, so the US was less dependent on exports, she added.
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