European phthalic anhydride (PA) activity is limited as the market is awaiting the outcome of the feedstock orthoxylene (OX) August contract settlement.
Demand is weak because of the approach of traditional August end-user closures.
Consumption in southern Europe has been further limited by declining macroeconomic coditions. Industries downstream of PA are predominantly driven by GDP.
Spot trades are rare because most demand is being filled by contracts. Spot prices in northwest Europe remain at €1,130-1,200/tonne FD NWE for liquid and €1,100-1,150/tonne FD NWE for flake.
Nevertheless, prices in Southern Europe are below €1,100/tonne FD, because of weak demand. One trader saw values as low as €1,000/tonne FD, but this was not widely confirmed.
Upstream, OX demand is low because of the apporach of downstream August shutdowns. As a result, the August contract price is expected to settle at a rollover or slight decrease, although discussions are at an early stage.
Downstream, good availability and poor buying interest continue to exert downwards pressure on prices of plasticisers. However, suppliers expect the market to stablise in the next few weeks as several European manufacturing sites enter their turnaround season.
Dioctyl phthalate (DOP) prices have decreased by €10/tonne to €1,500-1,550/tonne. The negative sentiment in the DOP market is accentuated by a gradual shift of demand to alternative REACH-friendly plasticisers.
($1 = €0.70)
This week on ICIS ( www.icis.com):
20/07/2011 10:40 South Korea’s OCI cuts phthalic anhydride plant rate to 80%
19/07/2011 18:10 US OX producers propose 10.50 cent/lb hikes for August contracts
18/07/2011 17:48 Europe plasticiser producers set to enter maintenance season
