Phenol prices was noticed
up $30/mt week on week to $890/mt CFR China Thursday. South Korean-origin
offers were heard at $950/mt CFR China, while the sharpest buying indications
were heard at $880/mt. Chinese domestic phenol
prices increased by Yuan 400/mt week on week to Yuan 7,500/mt, which equate
to$852/mt on an import parity basis, this level not seen since early October2016.Increasing
feedstock
benzene costs due to firming crude was took up phenol prices, traders said. The FOB Korea benzene marker was noticed
at $930/mt Thursday, up $106/mt since January 5. "Overall phenol-acetone
plant margins are in the red, therefore we need to pass on the costs to our
customers or lower our operational rates even more," a producer said. The
notional breakeven level for phenol, calculated as the FOB Korea benzene marker
plus $250/mt, assessed at $1,180/mt Thursday, well above prevailing CFR China
phenol prices.
In plant news, Taiwan Prosperity Chemical Corp. running its Kaohsiung solvents plant at 60% of capacity due to poor margins after restarting Saturday after month-long maintenance, a company source said. The solvents plant is able to produce 360,000 mt/year of phenol and 220,000 mt/year of acetone. The CFR India marker was assessed at $1,020/mt, increased $20/mt week on week, based on a South Korean-origin offer at $1,030/mt CFR India, while bids were heard between $1,000/mt and $1,010/mt. The CFR Southeast Asia marker noticed up $20/mt week on week at $1,010/mt. Supply from Southeast Asia is expected to be thin after Mitsui Phenol Singapore reduced its operating rate to 80% in early January due to poor margins. Thai producer PTT Global Chemical plans to shut its No. 1 plant for 45 days' maintenance from March to mid-April, sources said.
ACETONE: Tracking Phenol prices Acetone was increased by $30/mt week on week to $830/mt CFR China Thursday, between buying and selling ideas of $800-$820/mt and $850/mt respectively, tracking a hike in China domestic prices. China domestic acetone rose Yuan 400/mt week on week to Yuan 7,400/mt, or $851/mt on an import parity basis. Traders said acetone margins have been strong recently but this was not enough to offset negative margins from phenol production.
Phenol/acetone plants typically make 1 mt of phenol per 0.62 mt of acetone. The CFR India acetone marker was assessed up $20/mt week on week to $905/mton offers heard at $950/mt CFR from Singapore and South Korea, while bids were heard at $870-$900/mt. The Southeast Asia marker was assessed at$860/mt, up $30/mt week on week, in line with the gains in the China market.
For Daily chemical report ,kindly call or Whatsapp at- 9599622045.
In plant news, Taiwan Prosperity Chemical Corp. running its Kaohsiung solvents plant at 60% of capacity due to poor margins after restarting Saturday after month-long maintenance, a company source said. The solvents plant is able to produce 360,000 mt/year of phenol and 220,000 mt/year of acetone. The CFR India marker was assessed at $1,020/mt, increased $20/mt week on week, based on a South Korean-origin offer at $1,030/mt CFR India, while bids were heard between $1,000/mt and $1,010/mt. The CFR Southeast Asia marker noticed up $20/mt week on week at $1,010/mt. Supply from Southeast Asia is expected to be thin after Mitsui Phenol Singapore reduced its operating rate to 80% in early January due to poor margins. Thai producer PTT Global Chemical plans to shut its No. 1 plant for 45 days' maintenance from March to mid-April, sources said.
ACETONE: Tracking Phenol prices Acetone was increased by $30/mt week on week to $830/mt CFR China Thursday, between buying and selling ideas of $800-$820/mt and $850/mt respectively, tracking a hike in China domestic prices. China domestic acetone rose Yuan 400/mt week on week to Yuan 7,400/mt, or $851/mt on an import parity basis. Traders said acetone margins have been strong recently but this was not enough to offset negative margins from phenol production.
Phenol/acetone plants typically make 1 mt of phenol per 0.62 mt of acetone. The CFR India acetone marker was assessed up $20/mt week on week to $905/mton offers heard at $950/mt CFR from Singapore and South Korea, while bids were heard at $870-$900/mt. The Southeast Asia marker was assessed at$860/mt, up $30/mt week on week, in line with the gains in the China market.
For Daily chemical report ,kindly call or Whatsapp at- 9599622045.
