29 June 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--European phthalic anhydride (PA) June contracts have settled at a reduction of €20/tonne ($25/tonne), following a similar trend in the June feedstock orthoxylene (OX) contract price, buyers and sellers confirmed on Friday.
Although some producers said that they had managed to agree some contracts at a lesser reduction of €15/tonne – in order to restore margins which have been weak throughout 2012 – the majority of players confirmed the €20/tonne fall.
PA producers had been targeting rollovers in June contracts, in order to restore profitability, but most were not successful because of weak underlying demand.
Underlying buying interest remains low because poor macroeconomic conditions have reduced consumer purchasing power. Nevertheless, some sources said that demand is improving in the downstream construction industry on seasonal factors.
June PA contract prices finalised at €1,455-1,485/tonne FD (free delivered) NWE (northwest Europe) for liquid, and €1,390-1,460/tonne FD NWE for flake.
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