31 July 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European adipic acid (ADA) contracts have settled for July at a rollover on average, sources confirmed on Wednesday.
Producers had targeted increases in order to restore margins, despite the €67/tonne ($89/tonne) drop in the feedstock July benzene contract.
“We asked for more,” one producer said, “but because of the reduction in July benzene this was not possible. The market is more balanced than before, I think that margins will improve step by step.”
One producer said that it had sacrificed orders in order to support prices. “We are willing to walk away from volumes,” it said.
Buyers said that increases were not justified, given the reduction in July benzene and low levels of summer demand. Buyers reported rollovers and decreases.
July ADA contracts are unchanged at €1,755-1,810/tonne FD (free delivered) NWE (northwest Europe).
Most players said they were waiting for the August benzene contract to settle before speculating over August prices. Producers said however that if benzene decreased slightly, they would try to roll over prices.
An initial European August benzene contract was agreed late on Wednesday at €946/tonne, down €32/tonne from July.
($1 = €0.75)
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