22 September 2008 03:46 [Source: ICIS news]
SINGAPORE (ICIS news)--Taiwan purified terephthalic acid (PTA) contracts for the past two months showed a sharp reversal in price direction as demand slowed, buyers and sellers said on Monday.
The price for July PTA contracts at $1,170-1,180/tonne represents a $50/tonne increase from June, while August PTA contract prices pulled back $130/tonne from July’s values at $1,040-1,050/tonne, they said.
The contracts were settled retroactively and were delivered late last week.
The settlements had come slightly later than usual as “some buyers remained insistent that July prices were too high and should be adjusted lower,” said the sales manager of a mid-sized PTA supplier.
“We took some extra time explain our situation. By the middle of this month, we came to a conclusion although the unhappiness remained,” added this sales manager.
“Demand turned weak from July to August, and spot prices also fell,” said the procurement manager of a polyester filament yarn producer in ?xml:namespace>
PTA prices fell to a 10-month low last week and may continue to fall due to lack of both upstream and downstream support according to market participants.
Taiwanese PTA suppliers included China American Petrochemical Co, Invista Far Eastern Petrochemical and Tuntex Petrochemical, while main buyers included Far Eastern Textile, Chung Shing Textiles and Tainan Spinning.
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