15 November 2007 17:59 [Source: ICIS news]
Following the settlement of October PX at a decrease of €32/tonne ($47/tonne), producers were keen to follow the pass-through level of €21/tonne, and give away no margin.
However, there was firm resolve from the buyer side to attain additional decreases due to weak downstream polyethylene terephthalate (PET) demand.
“Well that’s buyers for you. The fact is there is no incentive to move beyond the pass-through level as it will not increase the volume,” said one producer in response to buyers' comments.
"If I could double the volume by dropping another €5-10/tonne, it might be worth considering.”
Producers added that with November PX now settled at a rollover, PTA negotiations for the month would likely result in a rollover and an early settlement.
September contract prices were assessed at €799-828/tonne FD (free delivered) NWE (northwest Europe), according to global chemical market intelligence service ICIS pricing.
PTA is used in polyester production and is a feedstock for PET, commonly used in food and liquid containers.
European PTA producers include BP and Interquisa.
($1 = €0.68)
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