21 July 2010 23:59 [Source: ICIS news]
LONDON (ICIS news)--The European July adipic acid contract price has rolled over from June despite a €95/tonne ($123/tonne) drop in the July benzene contract, most producers and consumers confirmed on Wednesday.
The July pre-discounted contract price was agreed at €2,315-2,385/tonne FD (free delivered) NWE (northwest ?xml:namespace>
The July benzene contract settled at €680/tonne FOB (free on board) NWE, down €95/tonne.
Discussing the result of its July contract negotiations, an adipic acid buyer said: “I don’t see the effect of the benzene reduction, for me it was all about availability. The market is short, but there are signs that maybe we can find product.”
Another buyer also said that it had seen no change in its contract price from June to July.
“Prices in July have rolled over, there is some spot available but its around €200/tonne more expensive [than contract]. The rollover is based on availability. Costs are going down, but not the price, and I am quite optimistic about next month,” the buyer said.
Other buyers were optimistic that there might be some price relief in the coming months, maybe in September, one said.
“I can tell you that it was a rollover for July. No reduction. Supply and demand is really difficult because material is so very tight, but I hope to see some relief in September,” another buyer said.
Most producers confirmed that they had not made any adjustments to July contracts, although one did report an increase of €60/tonne.
“July pricing will be a rollover. Demand is very good and we have orders up to September,” the producer said.
The June adipic acid contract was agreed at an increase of €90/tonne despite a €59/tonne drop in the value of the June benzene contract price.
($1 = €0.77)
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