05 April 2012 21:47 [Source: ICIS news]
HOUSTON (ICIS)--US phthalic anhydride (PA) supplies will tighten as a result of a three-week plant shutdown and a recent force majeure (FM) declaration on feedstock orthoxylene (OX), industry sources said on Thursday.
The PA plant shutdown is scheduled for 7-28 April.
The OX producer would not comment on the FM.
Tight PA supply may result in higher prices in April and May, a trader said.
The March contract for molten-grade PA was assessed at 85-92 cents/lb ($1,874-2,028/tonne, €1,424-1,541/tonne), while flake-grade was assessed at 86-93 cents/lb.
It is an established practice for PA contracts to move in line with the previous month’s price change for OX, which is the principal feedstock for PA.
US PA producers and buyers said PA prices will increase in April, following the 2 cent/lb increase in the March OX contract, but added prices were likely to decrease in May, based on expectations of a lower OX April contract. The March OX contract was 71 cents/lb.
“PA supply will be tight and demand is weak because of soft demand in the plasticisers sector,” the PA producer said last week.
Major US PA producers include BASF, Koppers, and Stepan.
($1 = €0.76)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|