06 February 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European adipic acid January contract price movements were agreed within a wide-range from December, and settled at a weighted average of plus €50/tonne ($68/tonne), buyers and sellers confirmed on Wednesday.
The increase was attributed to a €69/tonne increase in the upstream January benzene contract price. There were a wide range of prices mentioned for January contract settlement, ranging from increases of €40-90/tonne from December.
Some sources said that agreements depended on when contracts were finalised, with contracts negotiated after the February benzene contract price was finalised resulting in more modest rises.
The February benzene contract price was agreed at a drop of €113/tonne from January.
January ADA contract negotiations were protracted, with producers originally targeting price rises of €100/tonne, to restore margins lost against benzene during 2012.
Buyers had argued that their own margins were too limited and ADA too oversupplied to support such substantial price hikes. The €50/tonne increase was seen as a compromise position.
($1 = €0.74)
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