NewsFlashEurope March phenol rises €50/t

11 March 2008 12:22 [Source: ICIS news]

LONDON (ICIS news)--European phenol contract prices linked to benzene have risen by €50/tonne ($77/tonne) in March, in line with upstream movements, a large producer confirmed on Tuesday.

The pre-discounted phenol contract range was pegged at €1,261-1,301/tonne on a FD (free delivered) NWE (northwest Europe) basis by global chemical market intelligence service ICIS pricing.

The rise in phenol contract numbers followed the €50/tonne hike in the March benzene contract, which was agreed at €787/tonne FOB (free on board) NWE.

Spot activity remained non-existent however, on a notional basis, a seller said, "following three consecutive price increases in benzene, phenol spot should be at least €50/tonne firmer".

Spot phenol was valued at €1,420-1,500/tonne FD (free delivered), up €50/tonne on rising raw materials and a tight supply situation.

The European phenol market remained under pressure from the ongoing force majeure at INEOS Phenol’s newly extended phenol and acetone facility in Antwerp, Belgium.

INEOS Phenol confirmed on Tuesday that the force majeure, which was originally declared in October 2007 due to unplanned technical issues, was still in place.

“We will lift the force majeure when we reach a stable and normal level of production, and today we are not there,” a company source confirmed.

European phenol producers include INEOS Phenol, Borealis, Polimeri, Ertisa and Novapex.

($1=€0.65)

For more on phenol and benzene visit ICIS chemical intelligence

By: Julia Meehan
+44 20 8652 3214

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