20 June 2008 23:59 [Source: ICIS news]
LONDON (ICIS news)--April European purified terephthalic acid (PTA) contracts have generally been agreed up €17/tonne ($26/tonne), in line with the upstream paraxylene (PX) increase, market sources said on Friday.
European sellers had originally said they would target more than the PX pass-through level, based on firmer market fundamentals.
However, major production issues involving two cases of force majeure at BP and Interquisa meant that the tone of discussions changed, as sellers accepted that the market was going through an unusual period and such issues could not be used to determine price direction.
The pre-discounted price range for April was pegged between €814-841/tonne FD (free delivered) NWE (northwest Europe).
Two sellers said they had also settled May contracts at the pass-through level, at plus €25/tonne.
Consumers were concerned over June and July PTA pricing, which was set to be much firmer due to rapid increases in European and Asian PX costs.
Major European PTA producers include BP, Interquisa and Artenius.
($1 = €0.65)
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