08 April 2011 23:59 [Source: ICIS news]
LONDON (ICIS)--European April bisphenol A (BPA) freely negotiated contracts were assessed up by €50/tonne ($71/tonne) to reach a new high of €1,900–2,000/tonne because of limited availability and healthy demand, sources said on Friday.
Increases of €30–80/tonne were reported by buyers and sellers.
“Freely negotiated contracts this month have been difficult. Our prices have gone up by €70–80/tonne and it’s because of the tightness,” a buyer said. The buyer reported its range at €1,900–2,000/tonne.
According to a reseller, its freely negotiated contracts had moved up €30–40/tonne from March.
April values settled on a free delivered (FD) northwest Europe (NWE) basis.
Formula-related contracts linked to the April benzene contract price had decreased by as much as €80/tonne. However, for some buyers linked to the March benzene price, BPA formula-related contracts had increased by €40/tonne.
The European April benzene contract was agreed at €860/tonne, down €141/tonne from the previous month.
Spot prices dipped €50/tonne from March values because of competitively priced material from Russia. European and Russian material was trading at €1,950–2,050/tonne FD NWE.
Supply remains tight, and it has been estimated that the market is short by around 2,500 tonnes.
“The shortage is more serious than it was last month,” a trader said.
One buyer said it had only been able to achieve 80% of its required volumes, and that spot availability is limited.
However, the majority of buyers said they had the volumes they required and some selling sources said that they believe the tight supply had reached its peak.
Prices are likely to stabilise in May as stock levels are expected to improve, buyers and sellers said.
($1 = €0.70)
For more on BPA visit ICIS chemical intelligence
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