27 October 2008 16:37 [Source: ICIS news]
HOUSTON (ICIS news)--US October phenol contracts have settled down down 2.5-2.99 US cents/lb ($55-66/tonne or €44-53/tonne) on the drop in feedstock benzene contracts and weak demand, buyers and sellers said on Monday.
The October contract price was assessed at 86-91 cents/lb FRT EQ (freight equalised) prior to discounts or incentives, according to global chemical market intelligence service ICIS pricing.
Buyers said prices would have fallen further but the contracts were mostly based on the feedstock benzene settlement.
The October benzene contract settled at $4.24/gal, down 22 cents from September.
“Expectations are that phenol will totally nosedive in November. Everyone is watching feedstock prices and holding out,” a buyer said.
Spot phenol for October lifting sold for 69-72 cents/lb FOB (free on board) US, but November prices will likely be much lower, a trader said.
“The entire economy is weak and getting weaker. People are worried and are taking defensive actions, preparing for the worst,” a phenol seller said.
“All phenol derivatives are slowing down further.”
Sellers have resisted naming November spot prices before feedstocks benzene and propylene settle.
Demand for phenol is tied to the automotive and construction industries. US phenol sellers include ?xml:namespace>
($1 = €0.80)
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