13 January 2009 23:59 [Source: ICIS news]
LONDON (ICIS news)--European epichlorlohydrin (ECH) prices sustained losses of €450/tonne ($600/tonne) in January due to skewed supply and demand fundamentals and falling upstream values, market sources said on Tuesday.
This fall left the range pegged at €1,210-1,250/tonne free delivered (FD) northwest Europe (NWE), down from €1,660-1,700/tonne FD NWE according to global chemical market intelligence service ICIS pricing.
The range was settled despite upstream quarterly propylene contract settlements remaining elusive. As a result, producers in the ECH market were now split, with several basing their prices on the monthly propylene settlement of €420/tonne, already accepted by the market. Others, however, opted to estimate the quarterly propylene settlement, pegging it around €450/tonne.
As a result, ranges in the market were varied but the majority of players agreed that €1,210-1,250/tonne was representative. ECH contracts were now also offered on a monthly or quarterly basis, although producers were quick to highlight that contracts could be reassessed should a quarterly propylene number emerge.
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