06 September 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--Freely negotiated bisphenol A (BPA) contract prices have dropped by €80/tonne ($105/tonne) on the low end of range in Europe because of cheaper imports from Russia and Asia, sources said on Friday.
Spot prices have also dropped because of the same reason.
Freely negotiated contract prices were agreed at €1,400-1,500/tonne FD (free delivered) NWE (northwest Europe), while spot prices settled at €1,310-1,400/tonne FD NWE.
European producers have reduced output and withdrew from the spot market in Europe and are only supplying contracted volumes and internal needs because they cannot compete with imports.
According to a major European producer, most sellers are struggling to pass on feedstock cost increases and instead decided to not sell anything to the free market to reduce their exposure to price volatility.
The market is expected to be oversupplied during the next four to six months because the peak BPA consumption season has passed and soon most players will begin to look at year-end inventory management to reduce stocks.
($1 = €0.76)
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