Asian Oxo Alcohols: SEA PA market up $10/mt on week on tighter feedstock

– LG Chem to shut PA plant end Apr

– Taiwan’s Nan Ya to restart 2-EH unit Mar 8

The phthalic anhydride (PA) market continued to gain traction this week as tighter feedstock such as oxo made producers shift the additional cost to buyers, and this lifted spot trade level. “OX supply is very tight, there is lack of raw materials so we have to increase our price offer to buyers in SEA this week,” a South Korean producer, who sold three parcel of cargoes to SEA this week, said. Other also said that demand is stronger as more buyers were stocking up ahead as more producers were planning for turnaround next month. South Korea’s Aekyung Petrochemical plans to shut its 210,000 mt/year phthalic anhydride plant at Ulsan in April for a month of scheduled maintenance, S&P Global  reported earlier. On the other hand, South Korea’s LG Chem plans to shut its 60,000 mt/year PA plant at Yeosu by end April for scheduled maintenance, a company source said Thursday. “We will shut down our PA plant by late April for 20 days,” the company source said. PA is mainly used in the manufacture of dioctyl phthalate, which is a plasticizer. Meanwhile, Taiwan’s Nan Ya Plastics will restart of its 2-ethyl hexanol unit Thursday, two days earlier than planned earlier, after it was shut down unexpectedly on February 12 due to a technical issue, a company source said Thursday. The 2-EH unit is located at Mailiao and has a production capacity of 205,000 mt/yr. The unit was earlier scheduled to restart on March 10. “We have shut down for 22 days in total, and our total production loss is 12,000 mt,” the company source said. Nan Ya Plastics is the largest 2-EH producer in Taiwan.

RATIONALE:

Dioctyl phthalate was assessed unchanged week on week at $1,055/mt CFR China Thursday, as price discussions were heard at around $1,055/mt CFR China. The CFR Southeast Asia marker was assessed up $10/mt over the same period at $1,270/mt, based on three spot trades, totaling over 400 mt in the range of $1,260-$1,280/mt CFR SEA. PA was assessed unchanged on the week at $890/mt CFR China, based on a trade concluded at $890/mt CFR China. The CFR SEA marker was assessed unchanged week on week at $980/mt CFR SEA, based on trades concluded in the range of $960-$980/mt CFR SEA, 2-EH was assessed unchanged on the week at $1,060/mt CFR China, below selling indications heard at $1,080/mt CFR China. The Southeast Asia marker was assessed unchanged on the week at $1,100/mt on muted trading. Normal butanol was assessed unchanged on the week at $930/mt CFR China based on a trade concluded at that level and the SEA marker was up $10/mt at $920/mt CFR SEA, below a selling indication heard at $930/mt CFR SEA.

 

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