07 October 2013 02:49 [Source: ICIS news]
BERLIN (ICIS)--The high price of phenol and squeezed bottoms lines may lead European phenol buyers to look to other regions for their supply if prices fail move in down 2014, a major phenol buyer said on Sunday.
“We want our business to stay in Europe, but we might have to look at other regions for supply if something isn’t done on the fee for next year,” the buyer said on the sidelines of the 47th annual European Petrochemical Association (EPCA) meeting.
When talking about its demand, the buyer said it was taking contract volumes, but its bottom line was “really suffering”.
“Demand is poor - I think it's very poor - my estimate is right now – [phenol] factories are running at 70%,” the buyer said.
“Epoxy resins demand is not as bad as polycarbonate (PC). The issue for the whole value chain is PC. It’s not buoyant in any one area,” the buyer added.
Phenol production has been cut back since July 2012 because of a drop in demand in major phenol derivative bisphenol A (BPA) and rates have remained low ever since.
The EPCA meeting runs from 5-9 October.
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