20 March 2013 06:39 [Source: ICIS news]
By Liu Lin
SINGAPORE(ICIS)--Butyl acrylate (butyl-A) prices in east China have been volatile since last Thursday on the back of offer price adjustments by Jiangsu Jurong Chemical, a market source said on Wednesday.
The producer has adjusted its offers three times since 14 March, the source said.
The company cut its offers to CNY12,500/tonne ($2,010/tonne) DEL (delivered) east China on 14 March from CNY13,200-13,400/tonne on 13 March because of high inventories, a company source from Jiangsu Jurong said.
Suppliers had increased their operating rates before the Lunar New Year holiday in February on expectations of higher prices, leading to the high inventories.
The company again reduced its offers to CNY12,000/tonne DEL east China on 15 March to compensate its regular customers and remain competitive in the domestic market, the company source added.
After the company first lowered its prices on 14 March, prices in the east China domestic butyl-A market dropped to CNY12,500-13,100/tonne DEL east China from CNY13,200-13,400tonne/year on 13 March, according to Chemease, an ICIS service in China.
Butyl-A prices in the east China market further fell to CNY12,000-12,600/tonne DEL east China on 15 March, in line with the cuts by Jiangsu Jurong, the data showed.
In view of the price declines, end-users from the downstream adhesive and coating sectors preferred to procure cargoes rather than adopt a wait-and-see stance, one trader said.
However, on 19 March, Jiangsu Jurong Chemical raised its butyl-A prices to CNY12,800-13,000/tonne DEL east China as a result of suffering losses, another trader said.
Prices in the east China were then closed at CNY12,500-12,800/tonne DEL east China on the same day, the trader added.
Jiangsu Jurong Chemical has a huge impact on the east China market due to its large capacity, the trader said.
The company has a total butyl-A capacity of 250,000 tonnes/year in Jiangsu province and is the biggest butyl-A supplier in east China.
($1 = CNY6.22)
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