NPRA ’11: Phenol premium over benzene widening in US – sources

27 March 2011 22:59  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS)-The kicker added on to US phenol contracts based on the benzene-plus model is widening, several sources said on Sunday.

Traders and producers speaking on the sidelines of the International Petrochemical Conference (IPC) said the range of the kicker on US phenol contracts is between 8-16 cents/lb ($176-353/tonne, €125-251/tonne) depending on buyer size and delivery method.

A producer pegged the range higher, saying that most contracts were being done above 12 cents/lb, and that negotiating a kicker at 10 cents/lb was “very competitive”.

However, a trader said most US buyers were able to play producers against each other, netting kickers that were closer to 8 cents/lb.

Currently, most US phenol contracts are based on benzene values, plus a kicker. The US March contract price is assessed by ICIS at 86.54-93.99 cents/lb FRT EQ (freight equalized).

Hosted by the National Petrochemical & Refiners Association (NPRA), the IPC continues through Tuesday.

($1 = €0.71)

To learn more about phenol visit ICIS chemical intelligence

By: John Dietrich

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