26 August 2011 18:07 [Source: ICIS news]
HOUSTON (ICIS)--US formula-based August phenol contracts were mostly settled at an increase of 7.4%, tracking higher August benzene, sources said on Friday.
Producers and buyers said they expect freely negotiated phenol contracts to settle 5.97 cents/lb higher as well. Sources said that negotiations are still ongoing in most cases, however.
Freely negotiated phenol contracts have a premium of 0.5–1.0 cents/lb over formula-based contracts for much of 2011 because of tight domestic supply and strong overseas demand.
Producers said US supply is still snug, and demand is healthier than it was a year ago, so it is unlikely that freely negotiated contracts will start to settle at a discount to formula-based contracts.
Buyers have said demand is softening, particularly from the resins and bisphenol A (BPA) sectors, but that they are still ordering full volumes of phenol.
US August phenol contract prices were assessed by ICIS at 83.94-88.39 cents/lb FRT EQ (freight equalised).Major US phenol producers are Dow Phenol, Georgia Gulf, Honeywell, INEOS Phenol, SABIC Innovative Plastics and Shell Chemical.
($1 = €0.70)
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