PRICE of spot butyl glycol (BG) prices in China and Southeast Asia will be enforced by rising costs of raw material n-butanol and the limited availability of deep-sea material in the first quarter, according to sources.
In January, butyl glycol prices were valued at US$1,590 to 1,620/tonne (1,193 to 1,215/tonne) CFR (cost and freight) China and at US$1,500 to 1,540/tonne CFR SE Asia, up by US$10 to 20/tonne from the previous week, reported by the ICIS.
Buying indications climb, with quotes at US$1,580 to 1,590/tonne CFR for February shipments as suppliers insist on higher prices, although modest demand has been recorded from the key Chinese market.
Selling indications for Japan and Malaysia-origin material were heard at about US$1,650/tonne CFR China.
“The current prices are too low and raw material (n-butanol) prices are expensive,” said a northeast Asia-based producer.
Based on the ICIS data, prices of feedstock n-butanol in Asia were assessed valued at US$1,470 to 1,560/
tonne CFR NE Asia on 11 January, up by US$20/tonne, tracking the uptrend in upstream propylene values in recent weeks.
Major US-based producers like Lyondell, Dow Chemical and Eastman may be forced to reduce output due to higher raw material costs, and tighten their supply.
Demand for BG from the downstream solvents sector in China is low amidst a weak global economy.
Meanwhile, Chinese buyers are conservative in buying ahead of the Lunar New Year celebrations this
February and since they have sufficient stocks. (RJA)
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