Updated to mid-November 2009
Asian market review by Jeremiah Chan, ICIS pricing
The initial half of the three months to November 2009 saw an period of relative price stability in the Asian bisphenol A (BPA) market, as buying interest slowed down significantly prior to the extended Chinese holidays in early October.
Market players, still haunted by the spectre of last year’s drop in prices in the fourth quarter, drastically reduced their inventories or BPA operating rates in late-September, resulting in prices falling from $1,250-1,300/tonne CFR (cost and freight) NE Asia (northeast Asia) to $1,200-1,250/tonne CFR NE Asia.
In October, however, cost-push from climbing benzene and propylene values resulted in higher numbers, with bid-offer levels by mid-November close to the $1,400/tonne CFR NE Asia mark. Helping to underpin price discussions was healthy demand from the downstream polycarbonate industry, which helped soak up excess cargoes from new regional capacities which started this quarter like Shanghai Sinopec Mitsui Chemicals’ 120,000 tonne/year plant in mid-August, and Chang Chun Petrochemicals’ plant expansion.
European market review by Truong Mellor, ICIS pricing
September demand was predicted in Europe to improve following the summer slowdown, and despite the €168/tonne drop in the benzene contract that month, BPA prices gained €15-30/tonne as suppliers aimed to recover margins lost earlier in the year.
The €71/tonne drop in October benzene combined with the increased prevalence of competitively priced imports helped push down BPA contracts by €60/tonne for the month. The weakening US dollar also eroded any export business from Europe.
Inventory management saw many suppliers bring down operating rates as Q4 progressed. As benzene values started to climb back up, sources felt that BPA prices would follow suit. However, November contracts were largely agreed to have rolled over at €1,010-1,090/tonne FD (free delivered) NWE (northwest Europe) due to cheaper imported material from Russia and Asia and balanced supply levels making any increases difficult to push through.
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Bisphenol A
Uses and Outlook
The main market for bisphenol-A (BPA) is in the production of polycarbonate (PC) with the second largest outlet being epoxy resins. Other uses include flame retardants (mainly tetrabromobisphenol-A), unsaturated polyester resins and polyacrylate, polyetherimide and polysulphone resins.
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Bisphenol A
Process Technologies
Bisphenol A is produced by the condensation of phenol and acetone in the presence of an acid catalyst (hydrogen chloride) and usually a promoter such as methyl mercaptan. Cation exchange resins can replace the acid catalyst in newer plants.
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