20 September 2013 15:08 [Source: ICIS news]
LONDON (ICIS)--European bisphenol A (BPA) demand continues to be poor because of sluggish derivative consumption rates, sources said on Friday.
The BPA market is long and there are no supply problems and imports from Asia continue to pressure the European market. Asian BPA is offered at €1,400-1,450/tonne ($1,892-1,959/tonne) DDP (delivered, duty paid) depending on destination.
One producer in Russia said it will offer about 500 tonnes of BPA in the spot market in October and about 2,000 tonnes for long-term customers. The producer said it might target a price increase in October if demand remains strong.
Two European producers have reduced output and have largely withdrawn from the spot market because they cannot match the prices buyers are bidding for.
October BPA price movements will depend on what feedstock will do, sources said. At the moment, the most likely outcome for October negotiations is a rollover, but if feedstock costs increase producers will aim to pass that on.
One buyer felt that this could be the bottom of the market now adding that it will not buy any additional cargoes in October because it is covered until the end of next month.
September freely negotiated contract prices are at €1,400-1,500/tonne FD (free delivered) NWE (northwest Europe).
($1 = €0.74)
Follow Janos Gal on Twitter @janosgalICIS
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