17 February 2011 17:42 [Source: ICIS news]
LONDON (ICIS)--European bisphenol A (BPA) contract prices in March are likely to be €350/tonne ($473/tonne) above December's range of €1,600-1,750/tonne because of higher benzene and acetone prices, a major producer said on Thursday.
"We are willing to increase contracts by €350/tonne above December's price level," the producer said.
"Our intention is to increase prices by €100-150/tonne, depending on the increases customers took in January and February," it said.
February BPA prices moved up €100/tonne from January to settle at a record high of €1,800-2,000/tonne FD (free delivered) NWE (northwest ?xml:namespace>
"Raw materials are extremely expensive. It's about cost recovery," the producer said.
The BPA market was tight globally and demand from all sectors, most notably the polycarbonate and epoxy-resins industries, was said to be higher than normal.
The February benzene contract went up by €122/tonne from January to settle at €1,001/tonne FOB (free on board) NWE (northwest Europe). It had risen by €149/tonne from December to January.
March BPA contracts are expected settle within the next couple of weeks.
Major European BPA producers include Bayer, SABIC and Momentive.
($1 = €0.74)