Europe ECH up €80/tonne on feedstock shortages

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

LONDON (ICIS news)-- The monthly European epichlorohydrin (ECH) contract price increased by €100-140/tonne ($135-189/tonne) in April due to severe shortages in the market, resulting from upstream supply constraints and lack of imports, sources said on Tuesday.

“Those consumers who negotiated early did well, [while] those who waited until the last minutes are suffering,” said one buyer.

April business was assessed at €1,520-1,600/tonne FD NWE in line with majority of market confirmation, according to data from global chemical market intelligence service ICIS pricing.

The hardest hit buyers were those who were previously buying cheap material from Russia, which had now dried up, according to one producer. After enjoying low prices for a long time they now had to scramble for product on the domestic spot market, but there was no availability, the seller added.

The main driver behind the increase was said to be shortness in propylene, in which April contract prices jumped by €70/tonne.

“Where propylene goes, ECH will follow,” one consumer said.

($1 = €0.74)

For more on ECH visit ICIS chemical intelligence
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By: Amandeep Parmar
+44 208 652 3214

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