SINGAPORE (ICIS)--Asia butyl glycol (BG) spot prices remain weak on sluggish sentiments amid feedstock softening, slow demand and ample supply, factors that would likely to weigh on the market in the near future.
- Soft feedstock affects sentiments
- Paint and coating sector is entering lull season in China and northeast Asia
- Inventory is ample in the region
In the week ended 7 November, spot BG prices in China (on zero antidumping duty [ADD] but subject to import duty basis) were assessed at an average of $1,060/tonne CFR (cost & freight), down by $12.50/tonne week on week, according to ICIS data.
Spot BG prices in southeast Asia were assessed at an average of $1,110/tonne CFR (cost & freight), down by $27.50/tonne week on week.
Butyl glycol spot prices in China continued to be under pressure tracking the China domestic market that is still in a soft trend.
Raw material did not lend support either; with n-butanol (NBA) prices having recently softened in China on weak buying interest and a decline in propylene prices on poor sentiment and length in November.
BG Import discussions were subdued with current prices not workable for some suppliers as they suffered losses in margins.
With China and northeast Asia entering a traditional lull season for the paint and coating sector in winter, demand would likely slow down further.
BG discussions in southeast Asia were also under pressure with ample supply from deep sea and regional suppliers and local prices were heard softer with intense competition.
Focus article by Li Li Chng