21 May 2010 23:59 [Source: ICIS news]
LONDON (ICIS news)--April contract prices for purified terephthalic acid (PTA) rose by €13/tonne ($16/tonne) from March, in line with upstream paraxylene (PX), which increased by €20/tonne in the same month, sources said on Friday.
In the beginning of April, PTA prices began to emerge that approached €780/tonne FD (free delivered) NWE (northwest Europe) - as producers managed to gain a margin over PX for some accounts, where additional material was required, according to sources.
May PTA contract levels had yet to be reported. The May PX price rose by €55/tonne to €870/tonne FD NWE, which would convert to a €37/tonne hike to PTA prices, based on a PX pass-through formula. April PX settled at €815/tonne FD NWE.
The PTA market was balanced to tight, and producers were introducing the idea of increasing margins for forthcoming contracts, sources said.
“PTA could be tight in June,” the customer added, echoing reports from others who cited shutdowns
As full confirmation of the April prices was not received, a mathematically derived indicator was applied using 0.67 of the upstream monthly PX contract. April PTA prices moved up to €740-770/tonne FD NWE, according to data from global chemical market intelligence service ICIS pricing.
Downstream, most polyethylene terephthalate (PET) May contract prices were €60/tonne higher than in April and were confirmed between €1,160-1,200/tonne FD Europe. Domestic and imported spot material was in short supply and prices soared into the mid to high €1,200s/tonne FD Europe.
($1 = €0.80)
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