NewsFlashEurope Q4 PA settled up Euro120/mt on tight supply, OX

21 October 2005 17:00  [Source: ICIS news]

LONDON (ICIS news)--Higher feedstock costs and tight supplies pushed the Q4 European liquid phthalic anhydride (PA) contract settlement to Euro950-970/tonne, up around Euro120/tonne on Q3, producers and consumers said on Friday.

The hike reflected the Euro160/tonne increase chalked up on Q4 orthoxylene (OX) feedstock prices, which were settled at Euro770/tonne free delivered (FD) Northwest Europe (NWE) as well as tight PA supply. The PA deal was agreed on a FD NWE basis.

A series of unscheduled and planned production shutdowns at key European producers since August has resulted in spot PA prices rising to Euro1,000/tonne FD in early October, from around Euro850/tonne FD at the start of August.

PA negotiations were hampered until this week by a delay in the settlement of OX prices as an initial Euro730/tonne agreement failed to find industry-wide support. The Euro770/tonne price was only agreed late last Friday (14 October).

The European PA market remained tight this week and spot material was in short supply. Austria’s Atmosa and Sweden’s Perstorp were both running plants at reduced rates of about 85% due to production problems which have plagued the plants since planned outages in August.

Arkema in France had been forced to run its PA plant at 80% for two weeks due to OX supply problems after Total had declared force majeure from its Gonfreville, France OX plant.

By: Geraldine Gilmartin
+44 20 8652 3214

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