Demand for Brazilian phthalic anhydride (PA) was strong in February and March, as there was less Asian PA available, two PA producers in Brazil said Thursday.
"We are sold out for March already," a source from Brazil's Petrom said.
The company's average sales price for March-loading cargoes was $1,720/mt FOB Santos, about a $200/mt increase from February.
For much of 2011, PA producers in South America had lost market share to Asian and particularly South Korean-origin PA. South Korean producers had targeted Latin America due to a dropoff in demand in China.
From the end of November 2011, however, prices in Asia began to pick up and have risen $285/mt to be assessed at $1,635/mt CFR China this week, according to Platts data.
In addition to the increase in PA prices, feedstock orthoxylene was in tight supply, which forced production cutbacks in Asia. As a result, there has been less PA to export out of the region to South America.
"Demand has been very strong in Brazil and the rest of South America," the Petrom source added.
A source from Brazil's other PA producer, Elekeiroz, agreed that demand for domestic product had strengthened from the lack of Asian material coming to South America.
"We've received lots of export inquiries," a source from the company said.
