04 July 2007 23:59 [Source: ICIS news]
LONDON (ICIS news)--European polycarbonate (PC) third quarter contracts were settled with increases around €0.05/kg ($0.07/kg), following a strong push for price hikes from sellers in an attempt to widen thinned margins.
Third-quarter GP (general purpose) moulding prices were assessed between €3.00-3.25/kg FD (free delivered) NWE (northwest ?xml:namespace>
Third-quarter GP extrusion prices were assessed in a range of €2.95-3.20/kg FD NWE, up €0.05/kg.
Contracts were heard settled at rollovers and with up to €0.10/kg increases in both sectors, however the ranges given were considered representative for the bulk of business.
Buyers said supply was good in the PC market, but that they had been met with a strong push for increases from all sellers, European producers as well as Asian suppliers.
Producers were pleased to have achieved increases, but said larger increases would have been needed to cover high raw material costs.
Targets had been set for €0.20/kg increases on all grades and blends.
Demand was balanced to supply in most segments except the GP moulding optical grade, according to buyers and sellers.
In this market, a slowing demand had created a slight oversupply, according to most players. This meant most sellers were forced to settle for quarter three rollovers in this area.
A producer said another significant reason to roll over prices was strong competition from an Asian distributor.
The European manufacturer was hoping demand would increase for the grade during quarter three in preparation for the Christmas period, when CD and DVD sales traditionally increase.
($1 = €0.73)
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