02 October 2013 17:24 [Source: ICIS news]
LONDON (ICIS)--The European October contract price of adipic acid (ADA) is expected to fall following a €51/tonne ($69/tonne) decrease in the contract price of upstream benzene, producers and buyers said on Wednesday.
One buyer said it has settled early and negotiated a €30/tonne decrease from some of its ADA suppliers, arguing demand remains flat at a low level and that the material is easily available in the market. The reduction could not be immediately confirmed with producers.
Other buyers and a seller expect prices to fall but are still estimating the cost impact of the benzene price reduction.
Views on demand were divided depending on end-use and region. A producer in northern Europe expects buying activity to be broadly stable, with increased demand in the downstream nylon 6,6 segment making up for the lower demand seen in the polyurethane segment.
A buyer in northern Europe said: “October demand is going to be stable. It’s not an amazing level, and we won’t be celebrating everyday.”
A buyer in southern Europe, however, expects demand in October to fall by 10% from September levels, on the back of uncertainties in the macroeconomic environment.
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