09 February 2006 11:29 [Source: ICIS news]
LONDON (ICIS news)--European adipic acid producers said on Thursday they hoped to lift February contract prices by Euro50-100/tonne, on the back of high raw material and production costs.?xml:namespace>
Suppliers said increases needed to be pushed through this month following February hikes in both the benzene and cyclohexane contract prices. Both products saw increases of Euro72/tonne on January prices.
Adipic acid customers had initially expressed reluctance in accepting hikes but have now admitted that increases were inevitable. Some deals have already been reported by buyers at increases in the range of Euro50-70/tonne from January.
Prices for adipic acid in January were assessed at Euro1,395-1,415/tonne FD NWE (free delivered ?xml:namespace>
Producers have been looking to recover margins this year after a long period of depressed prices.
Ukrainian supply problems could also encourage upward price movement, according to sellers. Many Ukrainian adipic acid plants have been running at reduced rates over recent weeks due to severe weather conditions and this has contributed to a tighter Ukrainian market. It was hoped that production rates would be ramped up throughout February as the weather improved.
Although European buyers and traders said they had so far not noticed any impact from the Ukrainian supply problems on the European market, producers said European supplies could become short if problems persisted.
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