Europe ECH buyers consider importing more product from Asia

20 March 2013 12:51  [Source: ICIS news]

NUREMBERG (ICIS)--European epichlorohydrin (ECH) buyers are considering importing more product from Asia in response to tightening supply conditions and skyrocketing prices in Europe, sources told ICIS on the sidelines of the European Coatings Congress and Show on Wednesday.

"It will not happen overnight as testing and other processes take time, but South Korea and China has some competitive offers we are looking at," a buyer said.

A second buyer said: "We have been in talks with a supplier from South Korea, and since they don't have to pay import duties, it is definitely worth considering."

ECH could be imported in ISO-tanks and freight costs are estimated at €80/tonne.

"Handling costs are low, there are no import duties to pay [from South Korea] and they are willing to sell, so we are considering our options," the second buyer added.

During 2012, ECH imports to the EU from the rest of the world dropped by 59% compared with 2011, Eurostat data shows (see below). Exports to the rest of the world from the EU fell by 3% during the same period. 

ECH imports and Exports (units tonnes)

Source: Eurostat

Date

IMPORT

EXPORT

Jan.-Dec. 2011

1,708

61,234

Jan. -Dec. 2012

696

59,344

change 2011 to 2012

-59%

-3%

 

Epichlorohydrin prices Europe vs Asia

Europe (FD NWE)

Asia (CFR China Main Port)

€1745-1750/tonne

$1500-1600/tonne


The congress runs from 18-19 March while the show will be on from 19-21 March. The event attracted 25,000 visitors and 887 exhibitors in 2011.


($1 = €0.78)


By: Janos Gal
+44 208 652 3214



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