US Aug PA contracts jump 8.75 cents/lb on higher feedstock

05 August 2014 20:44 Source:ICIS News

NEW YORK (ICIS)--US phthalic anhydride (PA) contract prices for August jumped 8.75 cents/lb ($193/tonne) from the previous month on the back of the same spike in the July contract settlement for feedstock orthoxylene (OX), sources confirmed on Tuesday.

PA molten contract prices moved up to 80.50-85.50 cents/lb free on board (FOB) from 71.75-76.75 cents/lb FOB in July.

PA flake contract prices rose to 81.50-88.50 cents/lb delivered (DEL) in August from 72.75-79.75 cents/lb DEL in July.

Monthly US PA contract prices typically settle on the delta of the previous month’s OX contract.

In July OX contracts settled up by 8.75 cents/lb on the back of significant increases in mixed xylenes (MX) spot prices during the month of June.

Buying activity for PA in July was strong as some buyers got ahead of the price hike in August.

For downstream unsaturated polyester resins (UPRs), construction activity, and housing are all in good shape, and that is keeping demand for PA steady in the third quarter.

Major US PA producers include BASF, ExxonMobil, Koppers and Stepan.

By Feliza Mirasol