15 November 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European bisphenol A (BPA) spot prices remained at their 2013 low of €1,330-1,380/tonne FD (free delievered) NWE (northwest Europe) for a second consecutive week as a result of cheap imports from Asia, ICIS data showed on Friday.
With imports being offered at this level, one European producer said it made no sense for it to compete in the external market.
“Right now it doesn’t make sense. As a European producer our costs are European costs. At those price levels it doesn’t generate margins good enough to want to run the plant. We need to sit on it,” it said.
“We may do a few deals just to manage stocks. Because of the market pricing we’re not doing anything in the external market.”
The market remains long, with Asian producers exporting large amounts of product into Europe. Already weak demand is compounded by BPA buyers destocking to reduce working capital on year-end balance sheets.
But did not expect to see the value of imports falling any further as Asian producers were already operating at tiny margins or at break even.
“It can’t go down any further than that. You’ve only got to look at the spread between BPA and phenol and acetone. It’s barely at break-even; there’s people losing a lot of money,” the buyer said.
($1 = €0.74)
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