Price and market trends: China’s domestic flexible polyols prices edge up on higher PO costs

26 May 2014 00:00 Source:ICIS Chemical Business

China’s domestic conventional flexible polyols prices were higher on the back of increases in feedstock propylene oxide (PO) domestic prices, according to ICIS data on 15 May.

The domestic prices of flexible polyols in China were at yuan (CNY) 13,100-13,600/tonne ($2,103-2,183/tonne) DEL (delivered) eastern China and at CNY13,100-13,400/tonne DEL southern China in the week ended 14 May, according to ICIS data. On a week-on-week basis, this reflected increases of CNY300/tonne in eastern China and CNY100-200/tonne in southern China, the data showed.

The price increase was largely driven by the sell-side, as local producers implemented price hikes on the back of increases in feedstock PO domestic prices and balanced-to-low inventories, according to market sources.

However, the overall market sentiment was described as cautious because the downstream markets had started to enter into the typical low demand season, market participants said.

By Pui Wing Ho