July Europe PA contracts up €50/tonne

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

LONDON (ICIS news)--European phthalic anhydride (PA) contracts were assessed up on average by €50/tonne ($79/tonne) for both flake and liquid due to the rising cost of upstream orthoxylene (OX), buyers and sellers said on Friday.

July OX saw an increase of €60/tonne from June, which PA producers who had OX formula-related contracts were able to fully implement.

Those who dealt with more market-related contracts indicated they were eager to emulate the same success.

Buyers, however, had pushed hard to minimise this latest wave of increases, citing poor supply and demand dynamics.

“Since 2007 supply has improved dramatically,” one consumer said, adding that it made little sense to increase prices significantly in light of the supply picture.

Following a set of negotiations, one producer said it had achieved an increase of between €40-45/tonne on flake and €40/tonne on liquid product.

A buyer also reported settling contracts at this level, deeming it a fair compromise.

The price of liquid has been assessed at €1,340-1,415/tonne FD (free delivered) NWE (northwest Europe), while flake was pegged at €1,290-1,405/tonne FD NWE by global chemical intelligence service ICIS pricing.

($1 = €0.63)

For more on PA visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect

 

By: Madelon Ten Cate
+44 20 8652 3214

< previous article(ICIS Chemical Business podcast November 2, 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly