09 September 2011 23:59 [Source: ICIS news]
LONDON (ICIS)--European September bisphenol-A (BPA) contracts settled €50/tonne ($69/tonne) below the August contract price because of lower feedstock costs and weak demand, sources said on Friday.
September freely negotiated BPA contracts settled at €1,650-1,750/tonne FD NWE.
One buyer said it purchased BPA for €1,590-1,610 FD NWE but producers did not confirm this. One trader said it saw prices as high as €1,910/tonne FD NWE for small volumes, however, this was not representative of the market.
One producer complained of reduced margins. "If phenol prices don't come down we may be forced to reduce BPA production rates which in turn may make the phenol market long," it said.
"The market is definitely not as strong as is usual for September when buyers traditionally stock up after a quiet month in August," added another producer.
Formula contracts based on August feedstock price increases settled at €1,640-1,720/tonne FD NWE, while contracts based on September feedstock costs decreases were assessed at €1,520-1,650/tonne FD NWE.
Spot trading was subdued this week because contractual volumes satisfied buying interest. Spot prices were quoted at €1,490-1,600/tonne FD NWE.
The general feeling in the market is that September will be similar to August in that demand is going to be low. Buyers are waiting to see how far prices will fall and are delaying orders amid concerns of ending up with undervalued stock.
($1 = €0.72)
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