06 August 2013 23:00 [Source: ICIS news]
NEW YORK (ICIS)--US phthalic anhydride (PA) August contract prices are down by 2 cents/lb ($44/tonne, €33/tonne) from July on the back of a lower contract price settled for feedstock orthoxylene (OX) last month, according to an ICIS assessment on Tuesday.
The monthly US PA contracts are settled on the delta of the previous month’s OX contract, and the OX July contract price was settled down by 2 cents/lb from June.
August PA contract prices are at 77-84 cents/lb free on board (FOB) flake and 78-85 cents/lb delivered (DEL) molten.
Demand is expected to be up slightly in August as buyers take advantage of the lower pricing, sources said.
Throughout most of the summer, demand has been flat, except in smaller volume, high growth end markets such as pharmaceuticals, food, industrial hoodliners and science lab countertops.
Last week, some suppliers said they received a few unexpected calls from customers who were looking to get quick orders of PA filled when their regular supplier could not fulfil their orders.
The suppliers who received these inquiries said that the orders were for small volumes.
Meanwhile a large plasticizer maker is said to be in a month-long turnaround during August. The shutdown affected July-order volumes, market sources said.
Sources could not confirm the identity of the plasticizer maker.
PA is a key intermediate in the production of plasticizers, which are used to make products such as flexible polyvinyl chloride (PVC).
($1 = €0.75)
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