LONDON (ICIS)--European phthalic anhydride (PA) July contract prices were assessed up by €30/tonne by ICIS on Friday, based on a corresponding increase in the upstream European orthoxylene (OX) contract price.
July PA contract prices were assessed at €1,162-1,212/tonne FD (free delivered) NWE (northwest Europe) for liquid and flake material.
The vast majority of PA monthly contracts are formula-linked to OX price movements.
OX producers were said to be bullish throughout the negotiations, pushing for increases of €50/tonne.
However, the settlement was largely seen as a fair reflection of the PA market.
“We are happy with the €30/tonne increase, even though the initial talk was for €50/tonne, it would be difficult to pass such an increase to our customers,” said one producer.
Another producer admitted it expected lower increase of €20/tonne.According to one source, a couple of PA producers were trying to secure higher increases of around €50/tonne, but this was not agreed elsewhere in the market with most producers confirming they have followed the OX movement.