10 November 2010 23:59 [Source: ICIS news]
LONDON (ICIS)--The November adipic acid pre-discounted contract price was unchanged from October despite a €36/tonne ($50/tonne) increase in the value of the November benzene contract due to improved availability, producers and consumers said on Wednesday.
In relation to the November adipic acid contract price, a major producer said: “At the beginning of the month the market was still tight, but for November I am seeing some better availability. There are no big changes in price.”
A second major supplier also confirmed that its November freely negotiated contract prices for non-nylon customers were unchanged from October.
“Business is good, there are no major issues with adipic acid and the market is back to a more reasonable situation than in the second quarter. I can confirm a rollover from our side,” the supplier said.
The November adipic acid pre-discounted contract price settled at €2,315-2,385/tonne FD (free delivered) NWE (northwest Europe).
A buyer for the production of polyurethanes (PU) also confirmed that its adipic acid monthly contract price failed to increase despite the increase in feedstock benzene.
“My contract price rolled over from October into November because availability is better,” he said.
Another large buyer for the engineering plastics market said: “The market feels calmer and I have had no problems getting material. Prices are stable.”
The adipic acid market has been globally tight since it underwent significant consolidation during the peak of the economic crisis, when Invista closed a number of its plants in the US and its 270,000 tonne/year facility in the UK.
Since then, strong growth in nylon 6,6 and rising demand for polyurethanes from Asia have contributed to the global tightness.
($1 = €0.72)
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