14 November 2008 23:59 [Source: ICIS news]
LONDON (ICIS news)--Recent benzene price volatility and the continued downturn in consumer demand had driven November contract settlements in the European bis-phenol A (BPA) market down significantly, market players said on Friday.
The drop in prices was assessed at €380-445/tonne ($481-563/tonne) and November contract settlements at €950-1100/tonne FD (free delivered) NWE northwest Europe), by global chemical intelligence service ICIS pricing.
“Benzene is defining the bottom end of the BPA market,” said a trader.
Spot deals had been taking place at levels well below €1,000/tonne, according to one source. Another buyer commented that it had settled BPA purchases at €950/tonne for November, adding that it expected the price to plummet further in December as the market ground to a halt.
Weak demand downstream from the automotive and construction industries, coupled with a long market, put considerable pressure on producers to reduce prices.
Buyers also reported BPA and epoxy resin from ?xml:namespace>
Although several sources believed the market would begin to recover in 2009, one major producer noted that, should consumer confidence fail to improve, all players would be facing serious problems.
“Two thousand and nine will be a rollercoaster,” said another source. “A lot of ups and downs.”
($1 = €0.79)
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