03 August 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--The European August phenol contract price has increased by €108/tonne ($132/tonne) from the previous month, following the same increment in the August benzene contract, phenol producers and consumers said on Friday.
The settled on a pre-discounted basis at €1,625–1,665/tonne FD (free delivered) NWE (northwest ?xml:namespace>
The phenol contract in Europe is largely linked to feedstock benzene price movements, although a quarterly fee is also an influencing factor for some producers and consumers in
The European benzene contract price for August was agreed at €1,061/tonne FOB (free on board) NWE, an increase of €108/tonne. The settlement was made at a US dollar concept of $1,299/tonne.
In relation to supply and demand in
Global financial instability is sapping consumer confidence, and market participants have been cautiously watching the upward price movements in the benzene market.
“Everybody is worried about the high benzene price in the
European phenol and derivative operating rates have been reduced to approximately 60-80%, because of lower demand. "People have cut back on units," a producer said. "There is not as much volume flowing through the units."
The major uses of phenol involve its conversion to plastics or related materials. Condensation with acetone gives bisphenol-A (BPA), a key building block for polycarbonates. Condensation with formaldehyde gives phenolic resins, the most famous of which is Bakelite. Hydrogenation of phenol gives cyclohexanone, an intermediate en route to nylon.
($1 = €0.82)
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