May Europe PTA settles at PX pass-through

04 July 2008 23:59  [Source: ICIS news]

LONDON (ICIS news)--May Europe purified terephthalic acid (PTA) contracts have been agreed up €25/tonne ($39/tonne) from April, in line with the pass through cost from upstream paraxylene (PX), market sources confirmed on Friday.

The increase was based on a €38/tonne hike in the May PX contract, based in turn on rising costs, putting the PTA range at €839-866/tonne FD (free delivered) NWE (northwest Europe) according to global chemical market intelligence service ICIS pricing.

PTA sellers had originally talked of trying to push for more than the pass-through equivalent, expecting healthy demand to permit a bullish approach.

Two force majeures affecting BP and Interquisa changed the tone of discussions, however, with producers forced to take a more measured approach.

The outlook was firmer for June and July with PX costs rising to record levels. This was a major concern for derivative polyethylene terephthalate producers, who were also facing rising monoethylene glycol prices.

Major PTA producers in Europe include BP, Interquisa which is now part of Cepsa Quimica, and Artenius.

($1 = €0.64)

For more on PTA visit ICIS chemical intelligence
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By: Edward Cox
+44 20 8652 3214

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