US plasticisers a sellers' market in '08 - trader

17 December 2007 17:00  [Source: ICIS news]

HOUSTON (ICIS news)--Buyers of US plasticisers will face higher and less flexible prices in 2008, despite recent softening of demand, a di-isononyl phthalate (DINP) trader said on Monday.

"The plasticiser markets have been buyers' markets in recent years but are now swinging in favour of producers," the trader said. "The feeling is that, unless demand comes down precipitously, everyone will have to get used to higher prices in the mid to long term."

Other market sources said in recent weeks that plasticiser supply tightness is only perceived to be so, as reports of buyers unable to procure material are rare.

Contracts on 2-ethylhexanol (2-EH), a plasticiser feedstock, were settled at 96-99 cents/lb ($2,116-2,183/tonne) DEL (delivered) during November, according to global chemical market intelligence service ICIS pricing.

Sources have said that December prices are expected to rise by a few cents/lb on the back of rising feedstock costs.

A recent spot deal was heard, but not confirmed, in the mid 90s cents/lb.

US plasticiser manufacturers include BASF, ExxonMobil and Eastman Chemical.

By: Landon Feller
+1 713 525 2653

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