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Petrochemical prices to rise slightly

(Xinhua)
Updated: 2007-03-08 16:42

Petrochemical prices will rise slightly in China as companies resume production after the Spring Festival holiday, the China Securities Journal reported on Thursday.

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Although prices of most petrochemicals were lower in February than in January because the domestic market slackened off around the holiday, they were still up year-on-year as a result of the rising international oil price.

Polythene prices rose 12.92 percent to 12,894 yuan (1,653.1 U.S. dollars) per ton, polypropylene rose 10.26 percent to 12,330 yuan per ton, polyvinyl chloride edged up 1.22 percent to 7,024 yuan per ton and synthetic cisdene surged 15.77 percent to 12,928 yuan per ton.

The international oil price remains at a high level and is unlikely to tumble as the economies of the United States, Europe and Japan are picking up, said the report.

Domestic demand for petrochemicals is on the rise as companies increase their stockpiles of raw materials to resume production in March.

But petrochemical prices are unlikely to continue to rise sharply because a number of companies will be "more cautious about purchasing" due to their poor operation and the government's macro-control policy in the sector.