Europe E and P-series glycol ether prices rise on tight supply

26 March 2010 23:59  [Source: ICIS news]

LONDON (ICIS news)-- European butyl glycol (BG) and butyl di-glycol (BdG) spot prices firmed by €10/tonne ($13/tonne) this week due to tight supply, sources said on Friday.

Buyers reacted with dismay, as the price increases went through despite sluggish demand.

“This is typical of producers - [they’re] always trying to get more profit from less volume,” said one customer.

BG was assessed at €1,160-1,180/tonne FD (free delivered) NWE (northwest Europe), and BdG at €1,180-1,200/tonne FD NWE, according to data from global chemical market intelligence service ICIS pricing.

Methoxy propanol (PM) also strengthened by €30/tonne to €1,050-1,070/tonne FD NWE, and methoxy propanol acetate (PMA) by €20/tonne to €1,170-1,190/tonne FD NWE, market players confirmed.

Customers lamented the scarcity of Asian and US imports, due to a strong US dollar, high shipping costs and firm Asian and US prices, which gave European producers leverage in negotiations.

Combined with the ethylene contract for April settling up €20/tonne and propylene firming by €70/tonne for the month, glycol ether suppliers were targeting a €50/tonne increase for the month.

“If we don’t see a price rise we will walk away from the business,” stated one producer.

($1 = €0.75)

For more on glycol ethers visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Amandeep Parmar
+44 208 652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly