11 January 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European freely negotiated bisphenol A (BPA) contracts have settled at a rollover as a result of lacklustre demand, sources said on Friday.
The January contract price is at €1,570-1,600/tonne ($2,093-2,133/tonne) free delivered (FD) northwest Europe (NWE).
A major producer said that demand is very weak and production costs are still high, but cannot be passed on to its customers. It said one of its competitors is very aggressive in the market and is targeting price increases in February as a result of the recent feedstock benzene price rise of €69/tonne.
The producer added that there are still some imports from Russia and Asia, but because of rising prices in China and neighbouring countries, the arbitrage window could close. In Asia, BPA is trading at $1,850-1,900/tonne, the producer, a buyer and a trader said.
In Europe, spot trading has been thin as demand is poor and producers have no spot material to offer. Bids and offers were heard around €1,550-1,600/tonnne FD NWE. Formula contracts are at around €1,580-1,650/tonne FD NWE, which could rise depending on which month's feedstock movements negotiating parties look at.
($1 = €0.75)
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