17 July 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--European polybutylene terephthalate (PBT) third-quarter contract prices have been agreed at a rollover from the second quarter, buyers and sellers confirmed on Tuesday.
Rollovers were agreed despite a decrease in upstream butanediol (BDO) third-quarter contract prices and weak demand, because of the need to preserve PBT margins, sources said.
Consumption from the automotive sector is weakening ahead of traditional summer holiday outages in August. Buying interest is being further limited by poor macroeconomic conditions, which have reduced consumer purchasing power.
This has particularly affected the production of small- and mid-sized vehicles. Some players have estimated demand in July 2012 at up to 20% below July 2011 levels.
Nevertheless, premium automotive production has not been affected by the general economic downturn, and is being supported by upward social mobility in ?xml:namespace>
“We sell into premium automotives which are selling well ... it’s because of upward social mobility in
Upstream, third-quarter European BDO contract prices have decreased by €90-100/tonne ($111-122/tonne) from the previous quarter, on lower feedstock costs, mediocre demand and adequate availability.
Third-quarter PBT contracts settled at €3.15-3.16/kg for filled grade.
($1 = €0.81)
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