26 September 2005 13:27 [Source: ICIS news]
VIENNA (ICIS news)--Producers of dioctyl phthalate (DOP) said on Monday they were concerned about the possible outcome of feedstock orthoxylene (OX) contract negotiations for the fourth quarter.
“A higher OX price will also affect our margins. An an increase of Euro100/tonne in Q4 OX, plus the Euro170/tonne hike in propylene, will translate into a Euro120-130/tonne increase in our DOP costs,” an Arkema source said at the sidelines of the European Petrochemical Association (EPCA) meeting
Margins for DOP producers have been poor this quarter and last week’s settlement of Q4 propylene at Euro810/tonne free delivered (FD) Northwest Europe (NWE), plus Euro170/tonne, will hit them hard, they said.
A very wide range is being talked for Q4 OX contracts, from a Euro50/tonne increase from one keen buyer to a Euro200/tonne hike from a bullish producer. The general consensus is that the price will probably land somewhere in between.
Plasticiser producers have all announced their intention to increase prices in October, with Perstorp the most ambitious currently at plus Euro180/tonne.
DOP currently trades in the mid-Euro900s/tonne FD NWE.
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