25 June 2010 23:59 [Source: ICIS news]
LONDON (ICIS news)--June contracts for European bisphenol A (BPA) were assessed at a rollover, maintaining the large increase from May as feedstock remained short, industry sources said on Friday.
Settlements were €1,450-1,900/tonne ($1,790-2,346/tonne) FD (free delivered) NWE (northwest Europe), representing both formula related and freely negotiated business.
The June assessment reflected the majority of business reported at €1,700-1,800/tonne FD NWE.
The rollover followed a May increase of €370-380/tonne, a 28% rise over April.
July contract prices could roll over as well, producers said, with one adding that the rollovers could continue as far as September.
“We had hoped that going into July, there would be significant improvement, but I don’t think that that will be the case now,” a buyer said.
May prices rose so sharply because of a shortage of feedstock phenol.
Since then, phenol supplies loosened as producers lifted force majeure declarations, and a plant in Germany completed a 14-day turnaround.
However, BPA sources on the sell side said the market was still short and that only contract customers were receiving product. Despite requests from customers, producers were not supplying the spot market.
In addition, demand from the polycarbonate (PC) producers continued to drive the market.
($1 = €0.81)
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