MELBOURNE (ICIS)--The yuan-denominated domestic butyl glycol (BG) prices in China pared recent losses in response to the shutdown of a domestic BG plant and in the wake of a fire at a local cracker, importers said on Wednesday.
Dynamic (Nanjing) Chemical Industry on 1 April took its BG plant off line, its third shutdown in four months.
In addition, Sinopec Yangzi Petrochemical Co’s Nanjing-based No 1 cracker caught fire on the evening of 30 March.
Some BG market participants said that while the incident at Yangzi Petrochemical has not exerted upward pressure on the prices of raw material ethylene oxide (EO), the incident has prevented EO prices from falling further.
Prior to the fire, some market participants had expected to see a further drop in EO prices, which had slumped by CNY1,600/tonne in the two weeks ended 24 March.
BG prices in east China rebounded to yuan (CNY) 10,300/tonne ex-tank from the lowest level of CNY10,100/tonne ex-tank a week ago, said importers.
The prices in south China also rallied to CNY10,450-10,500/tonne ex-tank from the lowest point of CNY10,250/tonne ex-tank the week prior, the importers said.
BG, derived from EO and n-butanol (NBA), is also known as ethylene glycol ethers (EGE).