Bisphenol A (BPA) prices are continuing their upward climb in September

Bisphenol A (BPA) prices are continuing their upward climb in September, with sellers expecting to see hikes of up to €150/tonne. Tight supplies have allowed BPA suppliers to recoup hikes in benzene and consequently phenol costs over the last few months.

Minimal September targets have been set at €1500/tonne by some. August also saw hikes of around €150/tonne. Buyers say they have little choice but to accept these hikes given the tight market situation.

Quarterly BPA prices began the year closer to the €1000/tonne mark. Since then, the majority of contracts have been switched to a monthly basis to keep up with feedstock volatility, although there are still some longer term contracts in place. Quarterly figures are currently around €1400/tonne. Although prices have risen dramatically, producers have not increased margins but have simply passed on rising feedstock costs.

Players point out that Asian imports of BPA have dried up. With Asian demand for BPA into polycarbonate soaring and epoxy demand also showing a dramatic increase, there have been no volumes available for Europe, say sources. With Asian prices talked around $1800-1850/tonne, the arbitrage to Asia is also open. In addition, imports of Brazilian material into Europe have diminished, further tightening European supply.

BPA production problems in Japan have shortened availability and, as a result, polycarbonate producers have had to cut operating rates. There are also heard to be some production issues in the US, adding to a globally tight BPA market.

In Europe, meanwhile, polycarbonate demand is exceeding expectations and worldwide growth rates are being reassessed. As a result, integrated BPA producers are said to have less and less material available for sale on the merchant market. Producers say order books are full and they could sell more material if quantities were available.

Polycarbonate sellers have targeted massive price increases during the summer in order to pass on feedstock hikes. Some producers are now trying to raise prices on a monthly basis, where contracts allow, in order to reflect this trend in the upstream BPA market.