Phenol ‘06: Feedstocks challenge industry markets

06 June 2006 20:55  [Source: ICIS news]

PRAGUE (ICIS news) --Skyrocketing feedstock crude, propylene and benzene costs have posed pricing challenges for phenol and acetone markets worldwide, industry participants said on Tuesday.

More than 150 global phenol/acetone players met here for the two-day 4th ICIS World Phenol Acetone conference.

“In 2000, the market was a different world,” said conference chairman John Keeley, reflecting back to low crude, naphtha, propylene and benzene prices. “Now, it is a much tougher environment in 2006.”

Sellers said that markets were able to develop during last 4-5 years due to cheap feedstocks.

Benzene was historically traded at $100-200/tonne more than naphtha prices but the market became tight and benzene traded at $400/tonne more than naphtha and later $800/tonne more than naphtha, according to global chemical market intelligence service ICIS pricing.

Sellers said they now struggle to maintain margins in a sea of high feedstock costs while buyers push for lower prices on account of weak downstream demand.

The conference continues through Wednesday.

By: Heather McGuire Doyle
+1 713 525 2653

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