5 July 2019

Phthalic Anhydride
Europe
Chemical Prices |  News |  Analysis  Editor: Anne-Sophie Briant-Vaghela

CONTRACT PRICES 
      Price Range   One Year Ago US CTS/lb
Phthalic Anhydride Liquid
FD NWE JUN EUR/tonne -25.00 1139.50-1194.50 -25.00 1044.50-1099.50 57.96-60.75
Phthalic Anhydride Flake
FD NWE JUN EUR/tonne -25.00 1139.50-1194.50 -25.00 1044.50-1099.50 57.96-60.75

SPOT PRICES 
      Price Range   Four Weeks Ago US CTS/lb
Phthalic Anhydride Liquid
FD NWE  EUR/tonne n/c 1145.00-1175.00 -5 1155.00-1190.00 58.24-59.76
Phthalic Anhydride Flake
FD NWE  EUR/tonne n/c 1100.00-1135.00 -5 1110.00-1150.00 55.95-57.73

NOTE: Please click here for full details on the criteria ICIS pricing uses in making these price assessments.

Overview Prices took a moderate decrease this week as July contract price
decreases carried on trickling into the spot market. Producers
• Prices stable to soft are reluctant to concede pass-throughs as their margins have
• Market balanced been squeezed for several months due to high feedstock
orthoxylene (OX) prices.
European phthalic anhydride (PA) spot prices decreased slightly
at the high end this week as the market saw continued under Upstream
par demand and renewed competition from Asia. 
Orthoxylene
Two producers were said to be having minor production issues
which were deemed to not bear any consequences on The European OX market is quiet, with limited demand for spot
availability. Indeed, at least one of the issues were understood material. Supply is balanced to long despite BP’s ongoing force
to have already been resolved after a matter of days. majeure due to import material from the US and Asia. 

Sentiment was relatively more bullish on speculation that China Crude 

may have seen the worst of the drop in demand. However PMI
forecasts this week were not supporting this sentiment.  Crude futures recoiled on weaker macroeconomic indicators,
despite another round of OPEC cuts. Trade tensions have cast
uncertainty on demand, keeping a cap on prices and feeding
more volatility into the market. *Afternoon trading 

 
Crude oil 05-Jul* 28-Jun 21-Jun 14-Jun
ICE Brent 63.51 66.55 65.20 62.01
WTI 56.79 58.47 57.43 52.51

Outlook
• Demand softening as August quietness approaches
• September could see a rebound

Prices  

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Phthalic Anhydride Europe  
 
Downstream challenges, opportunities and threats that lie ahead in the
second half of 2019.
The European plasticizer market saw lower prices for all three
reported grades this week as a fresh round of talks and Global IPEX
business took place for July.
The regional and global ICIS Petrochemical Indexes (IPEXs) were
It is dioctyl terephthalate (DOTP) that seems to be the most sharply lower in June as markets struggled with weaker end-use
competitive as a wider and lower range is seen for this grade on demand, inventory building in China, and the broader impact of
the back of plentiful supply. the US-China trade war.

Production Here are the June IPEX values.

May to June
IPEX IPEX Value
Lakokraska will close its two PA production lines of 54,000 change
tonne/year joint capacity for three weeks as of mid-September. Global 231.33 -2.41%
US 230.16 -2.86%
Other regions
Northwest
282.85 -2.35%
Asia Europe 
Northeast Asia 211.33 -2.18%
PA import prices into China and southeast Asia are largely
firmer, tracking deals and discussions heard in the week for Published at the beginning of each month, the index provides
both July and August cargoes.  Some remnant July transactions an indicator of the average change in global petrochemical
were concluded this week, following which regional producers prices.
said they are finished with July trade and moving on to August.

Early indications heard for August cargoes suggested a bullish

turn among sellers, in a bid to offset recent increases in
feedstock OX costs.

US

July PA pricing is lower this week, tracking a lower June contract

settlement for feedstock OX. June OX contracts settled down
from May on the back of volatile feedstock mixed xylenes (MX)
prices and slower-than-expected demand in the construction
sector. PA market fundamentals are in balance. There is
sufficient supply to meet steady, average levels of demand with
no production issues expected.

News
INTERACTIVE INSIGHT: ICIS global price index down 15% in
second quarter
 
INSIGHT: US-China trade talks restored but second half will still
be tough

INTERACTIVE: June IPEX down sharply as markets struggle with

weakened demand

Slowing global economy hurts chemicals demand

Asia key petrochemical markets slump on prolonged US-China

trade war

https://www.icis.com/subscriber/news/2019/07/03/10343103/to
pic-page-recession-watch/ 

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Outlook for 2019 by ICIS market experts, examining the trends
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Europe
 
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