28 October 2009 23:59 [Source: ICIS news]
“Our adipic acid price remained flat in October compared to September and we saw a little increase with one of our suppliers,” said an adipic acid buyer for the production of polyurethane (PU).
The buyer described the European market as tight, but added that it was able to get its contractual volumes.
The October adipic acid pre-discounted contract price settled at €1,515-1,585/tonne FD (free delivered) NWE.
One major European producer said that it settled its October contract price at a rollover with regular customers, but added that it did get higher prices at other accounts.
“For regular customers the contract price rolled over but for new customers looking for volume we increased our price by €30/tonne,” the producer said.
Other European suppliers said that they had achieved increases of €30-50/tonne because the market was so short of material.
“For October, even with benzene down, we got through increases of €30-50/tonne because the market is tight,” said a major producer, adding: “There are always rumours of trouble with production, but I think that people’s stock was so low that even a minor production issue has major consequences for the market.”
Meanwhile, an adipic acid buyer in the coatings sector confirmed that it had paid an increase of €60-70/tonne for October, which brought their market price above €1,300/tonne.
“Maybe my price was lower in September but the market price for October is now around €1,350-1,400/tonne FD NWE and I have heard that producers will push for higher price again in November,” the buyer said.
Other buyers said they could still secure adipic acid below €1,300/tonne FD NWE.
“Product is available and I can get in the mid €1,200s/tonne for November,” said one buyer.
“Prices remain flat, but I agree that the supply situation has not improved,” said a second adipic acid buyer.
The European adipic acid market has gone through a period of consolidation since Invista announced in January 2009 that it would be closing its 270,000 tonnes/year adipic acid plant in ?xml:namespace>
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