Asian BPA up $30-50/tonne on snug supply, firm feedstock

SINGAPORE (ICIS news)--Firm feedstock benzene values and snug supply due to ongoing and upcoming turnarounds at regional plants were exerting upward pressure on the Asian bis-phenol A (BPA) market, buyers and sellers said on Monday.

Spot prices rose $30-50/tonne (€22-37/tonne) to $1,680-1,750/tonne CFR (cost and freight) China on Friday, according to global chemical market intelligence service ICIS pricing.

Producers were largely optimistic about the price outlook, citing low inventory along with strong demand from the downstream polycarbonate (PC), which is widely used in electrical and electronic sectors such as computers and business equipment.

Some traders were reported to buy speculatively due to the recent spike in values of upstream crude and benzene, sources added.

However, end-users in the downstream epoxy resins sector remained cautious due to poor derivative demand, sources said.

Benzene spot prices in Asia were up $35/tonne at $950-965/tonne FOB Korea on Friday, according to data from ICIS pricing.

($1 = €0.74)