30 May 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--European May adipic acid contracts settled at a rollover to a decrease of €50/tonne ($63/tonne), buyers and sellers said on Wednesday.
Price reductions were the result of weak demand. Nevertheless, prices at the low end of the range rolled over because weak margins did not allow room for producers to lower prices.
Low consumption has been caused by negative general economic sentiment which has resulted in buyers destocking and purchasing on a just-in-time basis to mitigate the risk of holding overpriced stock.
Weak Asian buying interest has further limited consumption. ?xml:namespace>
The absence of sales into Asia from Europe has caused material previously earmarked for export to remain in
European adipic acid is oversupplied. As a result, several sources are predicting price erosion in July, as demand is now a more important driver of price than feedstock costs.
European May adipic acid contracts were finalised at €1,470-1,580/tonne FD (free delivered) NWE (northwest
($1 = €0.80)
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