Q3 PC contracts likely to settle with increases

27 June 2007 18:17  [Source: ICIS news]

LONDON (ICIS news)--European third-quarter (Q3) polycarbonate (PC) contracts looked likely to settle with price increases due to healthy demand, said buyers and sellers on Wednesday.

 

Most contracts were so far settled with hikes of €0.04-0.10/kg ($0.05-0.14/kg), they added.

 

Second-quarter GP (general purpose) moulding prices were at €2.95-3.25/kg FD (free delivered) NWE Europe (northwest Europe) and GP extrusion prices were in a range of €2.90-3.15/kg FD NWE, according to global chemical market intelligence service ICIS pricing.

 

Producers had targeted €0.20/kg hikes for the third quarter to widen thinned margins due to high raw material costs.

 

Buyers, however, said the PC market was in a transition period due to increased production capacity, which could affect producers' ability to implement their targeted increases.

 

While demand was described by sellers as healthy, buyers and suppliers were in agreement that availability of PC was good. This, as well as healthy competition from Asian players, made bullish price hike initiatives by sellers difficult to push through.

 

($1 = €0.74)

 

By: Sofia Lind
+44 20 8652 3214

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