06 August 2010 23:59 [Source: ICIS news]
LONDON (ICIS)--The European August phenol contract price has decreased by €12/tonne ($16/tonne) from July as a result of a fall in the price of the feedstock benzene, phenol producers and consumers confirmed on Friday.
The August phenol pre-discounted contract price settled at €1,162-1,202/tonne FD (free delivered) NWE (northwest ?xml:namespace>
The August benzene contract was agreed at €668/tonne FOB (free on board) NWE (northwest
Despite the tight supply situation, the phenol contract price has moved down because it is fully linked to a benzene price formula.
“I can confirm that phenol went down €12/tonne with benzene. Phenol demand is very good and very strong. We are sold-out and are unable to take any spot orders,” said a major producer.
Referring to the phenol contract price, a second European producer said: “For phenol, it’s the same story: contract down with benzene. There is still very good demand and the market remains challenging.”
A major phenol buyer confirmed that its August contract price moved down €12/tonne and that its demand for downstream bisphenol A (BPA) was healthy.
“The €12/tonne drop in benzene will definitely be passed on. BPA demand is still strong and phenol is tight, but I am feeling that maybe availability is a little easier,” said the buyer.
A distributor of phenol said that demand remained at a high level not only in Europe, but also in
“There is still good demand and producers are shipping every available molecule to
($1 = €0.76)
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