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(ICIS) -- Asian phthalic anhydride (PA)
producers margins’ have firmed by USD70-100/tonne this week, widening for the
first time in 18 months because of active restocking, several regional producers
and traders said on Friday.
Several Chinese buyers said they are expecting the prices to continue
rising in the near term.
“Many traders and distributors have cleared their
lower-priced inventories, so there are no more low-priced cargoes available,” a
Chinese buyer said. “The producers will determine the PA spot prices for now,”
the buyer added.
A northeast Asian producer said it sold 5,000 tonnes of PA late on 15
December at USD1,480/tonne (EUR1,140/tonne) CFR (cost & freight) CMP (China
Main Port). Feedstock orthoxylene (OX) prices were assessed at
USD1,380-1,410/tonne CFR NE (northeast) Asia on 15 December.
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On 9 December, the CFR CMP benchmark of PA was assessed at
USD1,380-1,410/tonne, while the CFR NE Asia benchmark of OX was assessed at
USD1,380-1,410/tonne.
Producers normally produce PA by using 950kg of OX,
hence adding USD100/tonne to their PA prices to cover their conversion costs. In
the current firmer market, PA producers’ margins have increased by
USD54.75/tonne. |
