Feedstock settlement issues still unresolved in Europe PTA market

15 August 2014 17:13 Source:ICIS News

LONDON (ICIS)--There is still pricing confusion in the terephthalic acid (PTA) market as a result of a split settlement in feedstock paraxylene (PX) last month, with most players still not having concluded their contract negotiations, market sources said on Friday.

Last week, the PTA reference price was at €784-814/tonne FD (free delivered) NWE (northwest Europe), an increase of €32/tonne, based on a formula to reflect the higher prices in both PX settlements.

PTA is considered to have good availability, with enough material to meet consumers’ needs. One producer said that it has seen a few outages from suppliers, although this could not be confirmed, but that there was nevertheless no tightness in the market.

Another producer said that despite the recent removal of tariffs on South Korean material it does not expect this source to directly compete with European producers, since it expects prices to be similar to other imported material and many buyers try to maintain a balance of imported and locally produced PTA. 

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By Chris Barker