LONDON (ICIS)--Negotiations have begun for fourth-quarter contracts on the European polybutylene terephthalate (PBT) market, according to a source on Tuesday.
A producer said that some fourth-quarter contracts had already been settled at rollovers to small increases, but said that it was too early to be sure where the majority of contracts will settle.
Supply was said to be balanced, though a source said last week that the market had tightened.
Supply of feedstock butanediol (BDO) has tightened in recent weeks after Ashland's declaration of force majeure on BDO in Europe, following a fire and shutdown at its plant in Marl, Germany.
However a producer said this week that it had not seen a significant effect from this recent upstream tightening, saying that BDO has been tight in recent months even before Ashland's force majeure declaration.
Demand for PBT remains strong, as it has been in recent months.
Third-quarter contracts were settled at increases of €0.10/kg across filled, unfilled and flame-retardant grades.
Unfilled PBT was settled at €2.70-2.95/kg FD (free delivered) NWE (northwest Europe).
Filled PBT was settled at €2.99-3.09/kg FD NWE and flame-retardant PBT at €4.19-4.24/kg FD NWE.
These price rises were attributed to feedstock BDO costs, tight supply and strong demand.