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Updated to Q1 2018
Supply is relatively stable with most Chinese producers operating at optimal rates in light of the recent ADD verdict in the first quarter of the year. Most Chinese importers are choosing to purchase back to back domestic cargoes instead of looking towards importing from other sellers in countries that have anti-dumping duties on them. A scheduled turnaround at Zhejiang FCFC’s 24,000 tonne/year unit from March-April also slightly tightened supply in the region during the first quarter of the year.
Demand has been relatively unchanged in China because although import demand has been curtailed due to the imposition of the anti-dumping duties (ADD), Chinese buyers have been purchasing more domestic supplies for their downstream factories on a back to back spot basis rather than on term basis to secure their requirements. Market participants polled also mentioned that demand for the paint, resin and varnish sectors have been relatively healthy due to support from the construction sector in China.
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ICIS price assessments are based on information gathered from a wide cross-section of the market, comprising consumers, producers, traders and distributors from more than 250 reporters world-wide. Confirmed deals, verified by both buyer and seller, provide the foundation of our price assessments.
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