24 August 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--European August purified terephthalic acid (PTA) reference prices increased to €914-939/tonne ($1,143-1,174/tonne) FD (free delivered) NWE (northwest Europe) because of the upstream paraxylene (PX) price increase from July to August, sources said on Friday.
PTA values rose from July to August by the equivalent of 67% of the €135/tonne PX increase in the same month.
The conversion fees for downstream polyethylene terephthalate (PET) customers is mostly around €160-170/tonne, although as high as €180/tonne and as low as €145/tonne have also been heard this year. The variety in fees depends partly on when contracts were signed.
PTA spot activity recorded over the past few weeks has involved exports to the Middle East and Asia, thus helping to bring an element of balance to what is described as a long European market.
"The market is more than long. It is really long," a customer said.
While there have been signs of good demand from the PET sector over several weeks, the European debt crisis is holding back market aspirations of the situation improving over the course of the next few months.
($1 = €0.80)
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