09 May 2013 00:01 [Source: ICIS news]
LONDON (ICIS)--European adipic acid (ADA) April contracts have settled at an average increase of €20/tonne ($26/tonne), buyers and sellers confirmed on Wednesday.
Settlements varied from rollovers to increases of €50/tonne, depending on starting point, but the majority of buyers and sellers considered a €20/tonne rise in April as representative.
The price rise was the result of producers needing to increase margins.
Buyers had been targeting price reductions of up to €50/tonne, citing weak demand and a €62/tonne fall in the upstream benzene April contract price.
Nevertheless, rising benzene spot prices in April made it clear that the feedstock cost reduction was not sustainable, and buyers were forced to abandon their position.
The May benzene contract price increased by €64/tonne.
Demand in May 2013 is broadly in line with May 2012, according to market estimates. Nevertheless, consumption levels are flat with April and year-to-date demand has been estimated at 5% below the same period in 2012.
Demand is weak because of poor macroeconomic conditions, which have limited consumer purchasing power.
($1 = €0.76)
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