08 January 2010 23:59 [Source: ICIS news]
LONDON (ICIS news)--European spot prices for mono propylene glycol industrial (MPGI) are trending upwards on strong seasonal de-icer and anti-freeze business and tight supply due to production issues, market players said on Friday.
“The MPGI market is going crazy, everyone is knocking at our doors,” said one manufacturer, referring to non-regular de-icer customers and co-producers.
Offers are now only valid for one week, sources said.
“We are seeing exceptional seasonal demand over the last two weeks,” said another producer, noting that by Tuesday this week (5 January), “45% of our monthly MPGI sales were already concluded”.
Buyers and distributors also reported a strong seasonal uptick in anti-freeze orders due to cold temperatures across Europe and the ?xml:namespace>
Spot prices had moved above €1,000/tonne ($1,429/tonne) FD (free delivered) NWE (northwest
This represented an increase of €40-60/tonne from the week beginning 21 December.
Numbers below €1,000/tonne were still heard from a few buying and reselling sources, but they were considered outdated January values, which had been agreed in December and were no longer valid for fresh business in January.
Producers reported higher prices of €1,050/tonne and above, but there was insufficient market confirmation to substantiate this.
One manufacturer said that earlier in the week it was selling MPGI between €1,020-1,050/tonne, but by the end of the week it had sold volumes into the de-icer market at €1,150/tonne FD. However, this level was not confirmed by other players.
The manufacturer said it had since upgraded its target MPGI price to €1,100/tonne FCA with immediate effect.
A similar picture was emerging for mono-ethylene glycol (MEG) where prices were increasing daily because of production difficulties around the globe at a time of necessary restocking in
Asian prices had soared and
December contracts were agreed at €660/tonne.
Likewise, spot had jumped up from the mid-to-late €500s/tonne CIF (cost, insurance, freight) seen in December to €750/tonne.
($1 = €0.70)
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