SINGAPORE,April 29-Acetic acid spot values in east China have risen by yuan (CNY) 50-100/tonne ($7.32-14.64/tonne) on strict price discipline by local producers and an outage at a Hebei-based plant but long-term outlook remains moderate, market players said on Thursday.
Producers had raised offers to yuan (CNY)3,000/tonne ex-tank and above this week, up CNY100/tonne, market sources said.
Deals, however, were largely concluded within the CNY2,750-3,000/tonne ex-tank range, representing a CNY50/tonne increase from levels at the close of business last Friday, according to global chemical pricing intelligence service ICIS pricing.
The Hebei plant outage had served to remove low-priced material from the market and caused the uptrend reversing five-month lows, they said in Mandarin, adding that it remained to be seen if the high prices could be sustained after May due to supply overhang and largely stable demand.
Local producers had faced stiff competition from producers in Hebei and Shandong areas with material priced at CNY2,800-2,850/tonne DEL (delivered) in the Jiangsu area, but the outage at the Hebei plant this week had removed these cargoes from the market, a Jiangsu-based producer said.
Lower-priced cargoes from the Hebei and Shandong areas have disappeared from the market this week and although there is little improvement in demand, many sellers raised prices as previous prices were at cost levels, the Jiangsu producer added.
We stopped taking orders this week, an official at the Hebei-based plant said.
Further contributing to sellers positive market sentiment is an impending turnaround at the Jiangsu-based plant in late May.
However, Tianjin Soda s new 200,000 tonne/year acetic acid plant in Tanggu District, Tianjin City, which is expected to come on-stream in June, had tempered expectations of any substantial price hike potential, market participants said.
Material from the Tianjin Soda plant will flood the northern Chinese market, which would redirect cargoes from the Hebei and Shandong region towards the Jiangsu area so we expect only a moderate increase in prices in May, the Jiangsu-based producer said.
Acetic acid is used in the manufacture of vinyl acetate monomer (VAM), which accounts for one-third of its consumption. Its end use market includes adhesives, textiles, paints and paper.
($1 = CNY6.83)
Producers had raised offers to yuan (CNY)3,000/tonne ex-tank and above this week, up CNY100/tonne, market sources said.
Deals, however, were largely concluded within the CNY2,750-3,000/tonne ex-tank range, representing a CNY50/tonne increase from levels at the close of business last Friday, according to global chemical pricing intelligence service ICIS pricing.
The Hebei plant outage had served to remove low-priced material from the market and caused the uptrend reversing five-month lows, they said in Mandarin, adding that it remained to be seen if the high prices could be sustained after May due to supply overhang and largely stable demand.
Local producers had faced stiff competition from producers in Hebei and Shandong areas with material priced at CNY2,800-2,850/tonne DEL (delivered) in the Jiangsu area, but the outage at the Hebei plant this week had removed these cargoes from the market, a Jiangsu-based producer said.
Lower-priced cargoes from the Hebei and Shandong areas have disappeared from the market this week and although there is little improvement in demand, many sellers raised prices as previous prices were at cost levels, the Jiangsu producer added.
We stopped taking orders this week, an official at the Hebei-based plant said.
Further contributing to sellers positive market sentiment is an impending turnaround at the Jiangsu-based plant in late May.
However, Tianjin Soda s new 200,000 tonne/year acetic acid plant in Tanggu District, Tianjin City, which is expected to come on-stream in June, had tempered expectations of any substantial price hike potential, market participants said.
Material from the Tianjin Soda plant will flood the northern Chinese market, which would redirect cargoes from the Hebei and Shandong region towards the Jiangsu area so we expect only a moderate increase in prices in May, the Jiangsu-based producer said.
Acetic acid is used in the manufacture of vinyl acetate monomer (VAM), which accounts for one-third of its consumption. Its end use market includes adhesives, textiles, paints and paper.
($1 = CNY6.83)
