South American phthalic anhydride producers faced severe competition from Asian-origin PA into the region, industry sources said Thursday.
"The market here (South America) is really bad for us," a PA maker said.
PA flakes from Asia were heard offered into Peru, for example, at $1,330/mt CFR for late June/early July arrival.
PA producers in Brazil and Chile had export offers at $1,530/mt and $1,600/mt FOB respectively, which were considerably higher than the Asian product.
South American producers were in a difficult position as their feedstock OX price is tied to the US and European markets. In May, the US OX contract price was at $1,477/mt, while the European contract was at Eur975/mt (about $1,404/mt). This compares to Asia, where the monthly average spot price was just under $1,289/mt FOB Korea.
"I don't know how they (Asia producers) are selling PA at such a low price," a US PA producer said.
