SINGAPORE (ICIS)--China imports of phthalic anhydride (PA) fell again in February 2014 because of weak demand and the ample availability of lower-priced domestic cargoes, market sources said on Thursday.
The country imported 3,932 tonnes of PA in February, a 28% year-on-year drop and 29% decline from the January 2014 volume, according to China Customs.
Domestic prices of the material in eastern China rebounded to an average of yuan (CNY) 9,125/tonne ($1,469/tonne) ex-tank on 21 March, after falling by nearly 15% since the second half of December 2013 to an average of CNY8,953/tonne ex-tank on 7 March, according to data from Chemease, an ICIS service in China.
China may further reduce its PA imports in the mid- to long-term as new domestic capacities come on stream, market sources said.
Dragon Aromatics' 260,000 tonne/year PA facility in Fujian and Tianjin Jinyuantai Chemical’s 130,000 tonne/year facility in Tianjin are due to start up this year.
($1 = CNY6.21)