Europe August phenol assessed up €6/tonne in line with benzene

01 August 2014 13:49 Source:ICIS News

LONDON (ICIS)--The August European phenol contract was assessed up €6/tonne on Friday, after the increase in key feedstock benzene was confirmed.

The July contract is valued at €1,636-€1,676/tonne FD (free-delivered) NWE (north-west Europe).

The increase may surprise some in the market with expectations for a decrease.

However, it was mainly due to a strengthening of the dollar, with the agreed dollar benzene contract value down $16/tonne compared to July.

The August benzene settlement was agreed at a US dollar concept of $1,450/tonne FOB (free on board) NWE (northwest Europe) and converted to the euro price at the agreed exchange rate of €1:$1.3401.

The phenol contract in Europe is largely linked to feedstock benzene price movements, with a fee, or adder, on-top. This fee is negotiated, usually quarterly or annually.

By Rhian O'Connor