European BPA August contracts roll over from July as higher feedstock prices offset robust supply, softening demand, but may tighten in September on shortages

Alison Gallant

LOS ANGELES , August 15, 2011 (Industry Intelligence) – Bisphenol A traders in Europe are predicting a tight September market due to supply challenges for feedstock phenol on production outages, ICIS news reported Aug. 15, citing market sources.

The market tightness could come on the back of outages at Ineos Phenol GmbH & Co. KG in Germany and at Bratislava, Slovakia-based Slovnaft Plc., reported the Surrey, England-based chemical news service.

However, a buyer said Ineo's outage has not had an impact on the market, and the situation is unlikely to change in September. He added there was sufficient supply in the market, and phenol supply could also come from Asia and Russia.

August BPA contracts in Europe rolled over from July as higher feedstock prices offset ample supply and softening demand.

Some traders have already initiated discussions regarding September contracts, although such negotiations don't usually begin until the end of September or the beginning of October, because buyers are hoping to avoid possible price hikes and guarantee supply for the fourth quarter, according to a polycarbonate producer, reported ICIS.

The primary source of this article is ICIS news, Surrey, England, Aug. 15, 2011.

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