Europe November adipic acid settles up €30/tonne

25 November 2009 23:08  [Source: ICIS news]

LONDON (ICIS news)--European November adipic acid contracts have settled at an increase of €30/tonne ($45/tonne) because of higher benzene, producers and consumers said on Wednesday.

The November adipic acid contract settled at a pre-discounted price of €1,545-1,615/tonne FD (free delivered) NWE (northwest Europe), according to global chemical market intelligence service ICIS pricing.

The November benzene contract settled at €547 FOB (free on board) NWE (northwest Europe), up €42/tonne from October.

“November contracts have increased by €30/tonne and we are waiting to see what will happen with benzene in December,” said a major European producer, adding: “The situation is extremely good and we are surprised how good our demand is.”

“Demand is still good and we have seen an increase of €30/tonne,” said a second major adipic acid supplier to the European market.

On the buying side, polyurethane manufacturers confirmed that their November adipic acid prices had increased.

“There is very little material available and if you are not a contract customer you can’t find material,” said a buyer. “We paid on average an increase of €30/tonne for our November material,” they added.

Looking ahead to December, producers and consumers agreed that adipic acid supply was expected to remain short.

One supplier said that it was inundated with enquiries from outside Europe but was unable to supply. Another described its stock position as “sold-out until the end of the first quarter of 2010”.

The tight situation in Europe follows market consolidation, including the closures of Invista’s adipic acid operations in Wilton, UK and Maitland, Canada.

($1 = €0.67)

For more on adipic acid visit ICIS chemical intelligence
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By: Julia Meehan
+44 20 8652 3214

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