27 January 2010 23:59 [Source: ICIS news]
LONDON (ICIS news)--European January adipic acid contracts have settled at an average increase of €120/tonne ($169/tonne) from December due to higher benzene costs, producers and consumers confirmed on Wednesday.
The contracts settled at a pre-discounted price of €1,665-1,735/tonne FD (free delivered) NWE (northwest ?xml:namespace>
European adipic acid producers reported increases of up to €150/tonne for freely negotiated January contracts, while consumers quoted increments of €100-120/tonne.
The gains were largely driven by the sharp and “surprising” hike in the value of the January benzene contract price, which settled up €189/tonne from December at €759/tonne FOB (free on board) NWE, sources confirmed.
“Asian demand is firm and European demand is firm, which is good,” said one adipic acid producer, which reported that for freely negotiated contracts it increased its January price by €150/tonne.
A second producer said that its highest increase for January accounts was €140/tonne.
Adipic acid buyers quoted slightly different increases for their January contracts, with upward movements of €100-120/tonne reported.
“Benzene was a big impact for sure, and we have seen increases of €120/tonne in January,” said an adipic acid buyer for the production of coatings.
A consumer purchasing for the production of polyurethanes said that it had to pay €100-140/tonne more for its January adipic acid volumes.
($1 = €0.71)
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