PTA sellers and buyers divided over Jan contracts

14 March 2008 13:43  [Source: ICIS news]

LONDON (ICIS news)--The size of the January purified terephthalic (PTA) acid contract increases was still a hurdle with sellers and buyers yet to finalise business, they said on Friday.

 

Upstream January paraxylene contracts were agreed at an increase of €21/tonne ($33/tonne), equating to a PTA pass-through of plus €14/tonne.

 

“We want the full pass-through but have not had success so far. Talks are deadlocked but we are optimistic because we are seeing a pick up in demand for March,” said one producer.

 

Settlements have been reported at a €10/tonne increase from one buyer, with a second manufacturer quoting plus €11/tonne.

 

Other consumers were still targeting less, citing weak demand and ample supply over the January period, starting at plus €5/tonne.

 

A typical pick-up in derivative polyethylene terephthalate (PET) demand was emerging, as expected ahead of the spring period when bottle-grade offtake should increase.

 

December contracts were agreed up €5/tonne on average at a pre-discounted range of €783-812/tonne FD NWE.

 

For more on PTA visit ICIS chemical intelligence

 

($1 = €0.64)

By: Edward Cox
+44 20 8652 3214

< previous article(ICIS Podcast: Chemical News Central 2 November 2009)

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