Chinese BPA prices fall on high inventories

30 November 2007 03:22  [Source: ICIS news]

SINGAPORE (ICIS news)--Chinese bisphenol A (BPA) prices have fallen about 3.4% over the past week on the back of high inventory levels, traders and producers said on Friday.

 

Deals were heard done on Friday morning at yuan (CNY) 16,900-17,000/tonne ($2,290-2,304/tonne) ex-warehouse, a CNY600/tonne drop from a week ago, according to global chemical market intelligence service ICIS pricing.

 

“The high domestic inventory levels, coupled with other traders who were dumping cargoes to get cash in a hurry before the close of the year, have successfully pushed down domestic prices,” a local distributor said in Mandarin.

 

A total of 40,024 tonnes of BPA were imported in October according to statistics released by the Chinese customs, a huge jump over the 15,439 tonnes imported over the same period in 2006.

 

“When the statistics were released, it shocked traders, as downstream demand was not especially strong, but so much material was imported in October,” a Chinese importer of BPA said in Mandarin, adding that traders who bought large volumes the previous month made a “judgement error”.

 

In the meantime, buying interest was muted for imported cargoes.

 

“I do not plan to fix any US dollar cargoes for the time being since domestic prices are much lower,” a purchasing official at a Chinese epoxy resin maker said in Mandarin.

 

“The high inventory levels, coupled with other traders who are dumping cargoes to get cash in a hurry before the close of the year have pushed down domestic prices,” a second local distributor said in Mandarin.

 

BPA majors in the region who export cargoes to China include Nan Ya Plastics, Mitsui Chemicals, Kumho P&B Chemicals, and LG Chem.

 

($1=CNY7.38)

ICIS Copyright © Reed Business Information 2009

Author: Jeremiah Chan
+65 6780 4359

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