Europe Feb BPA split between rollover and €20 drop

08 February 2008 23:59  [Source: ICIS news]

LONDON (ICIS news)--Freely negotiated European bisphenol-A (BPA) business for February was split between a rollover and average decreases of €20/tonne ($29/tonne) as upstream pressure met weaker downstream consumption, said market sources.

The February price range was assessed at €1,440-1,530/tonne FD (free delivered) NWE (northwest Europe), according to global chemical market intelligence service ICIS pricing, a decrease of €20/tonne at the low end and a rollover at the upper part of the January spread.

Numbers below this range were also reported, but were not considered representative of the general market.

By contrast, a few buyers and resellers said that numbers above €1,500/tonne FD NWE were being increasingly phased out due to softer market fundamentals, although these were not widely confirmed.

Producers mainly reported rollovers for February, while buyers and resellers said they had agreed some decreases of €10-30/tonne.

Buyers noted that weaker downstream consumption in parts of the polycarbonate sector and competitively priced imports from Russia had provided them with additional bargaining power.

However, a few producers were adamant that they had not accepted anything below a rollover, supported by slightly higher feedstock costs in January and ongoing tightness in the upstream phenol market.

By contrast, formula-related contracts moved up in line with the higher upstream costs, although precise figures were not disclosed.

Views were mixed about availability. Buyers said that supply was plentiful, but producers maintained that the market remained fairly balanced.

BPA market participants include Bayer, Hexion, Valspar, Air Products and Mitsui. It is used as a feedstock in the production of epoxy resins, polycarbonate and polyols.

($1 = €0.69)

For more on BPA visit ICIS chemical intelligence

By: Heidi Finch
+44 20 8652 3214

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