Europe July PTA settles down at €55/tonne

07 September 2007 23:59  [Source: ICIS news]

LONDON (ICIS news)--The majority of European July purified terephthalic acid (PTA) contracts have been settled, with an the average decrease of minus €55/tonne ($75/tonne) noted over June levels due to limited availability, healthy demand and reduced imports, market sources said on Friday.

 

July prices were assessed at €837-866/tonne FD (free delivered) NWE (northwest Europe), according to global chemical market intelligence service ICIS pricing.

 

Suppliers talked of agreements between minus €55/tonne and minus €50/tonne signifying a €10-15/tonne margin increase.

 

Producers listed limited availability, reduced imports from Asia and the US and high downstream polyethylene terephalate (PET) demand among reasons for the margin improvement.

 

Despite these reports, several buyers talked of achieving the paraxylene (PX) pass-through level of minus €65/tonne.

 

Other buyers conceded they had agreed to a margin loss with their suppliers.

 

One buyer talked of agreeing minus €55/tonne with its major supplier.

 

The sources said it had no room for negotation as its supplier was unsympathetic to the challenges of the downstream PET market.

 

Despite the range in results, the bulk of opinion suggested settlements were around minus €55/tonne.

 

PTA is used in polyester production and is a feed stock for PET, commonly used in drinks bottles.

 

European PTA producers include Artenius, BP and Interquisa.

 

($1 = €0.73)

By: Carl Roache
+44 20 8652 3214

< previous article(ICIS Chemical Business podcast November 2, 2009)

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