04 March 2011 23:59 [Source: ICIS news]
SINGAPORE (ICIS)--The March European phenol contract price has rolled over from the previous month as a result of a rollover in feedstock benzene, market sources said on Friday.
March phenol settled on a pre-discounted basis at €1,545-1,585/tonne ($2,146-2,201/tonne) FD (free delivered) NWE (northwest Europe), unchanged from February following the rollover of the March benzene contract price.
“As always the phenol price will follow whatever happens with benzene, but the market is very tight so I see no reason why spot prices should not move up,” said a producer.
Talking about the phenol contract, a major European producer said: “Phenol is tight but we are fully contracted against benzene, so it’s a rollover. At least a rollover gives the market some price relief, although benzene remains very expensive in Europe compared to Asia.”
On the buying side, sources preferred to describe the European market as balanced rather than tight.
In relation to the March contract price, a large buyer said: “The market is not that tight despite shutdowns and cumene problems, and we can get all we need. Our phenol price for March has rolled with benzene.”
Phenol contracts in Europe are 100% linked to feedstock benzene, with the supply-and-demand dynamics of the market having little influence over the contract price.
($1 = €0.72)
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