SINGAPORE (ICIS)--Export volumes of n-butanol (NBA) from Singapore in July fell by 61% year on year because of poor demand from the key China market amid the seasonal lull and sufficient domestic supply, market participants said on Monday.
According to data collected by IE Singapore, overall NBA exports were at 3,100 tonnes in July, compared with 8,060 tonnes a year ago.
Data from IE Singapore showed that Singapore did not export any NBA to China for July this year. This was a stark difference from July 2013, when Singapore exported 5,000 tonnes to China.
Market players attributed the decline to a lack of demand for spot NBA from China, which had sufficient domestic supply. The weak downstream demand in the butyl acetate (butac) and butyl acrylate (butyl-A) sectors further weighed on Chinese buying appetite for imports.
A large difference between the import-parity prices of Chinese domestic product and import offers also hindered spot discussions, one southeast Asia-based producer said.
Export volumes were also lower, partially because of a decrease in NBA production at a major Singapore-based producer’s swing plant, market players said.
Separately, the producer said that it had to export more cargoes to its facilities in the US because of a shortage there, following a force majeure at Oxea’s Bay City facility.