US polyether polyols poised to rise in April on feedstocks

31 March 2010 21:02  [Source: ICIS news]

HOUSTON (ICIS news)--US polyether polyols prices were poised to rise 8 cents/lb ($176/tonne, €132/tonne) on 15 April, driven by tight and expensive feedstocks, sources said on Wednesday.

The increase was likely to succeed because the initiative was supported by three key polyether polyols producers, a buyer said.

Additionally, two polyether polyols producers nominated a 15 cent/lb boost for 1 May.

Buyers and sellers acknowledged that high prices and tight supply of feedstocks propylene and propylene glycol strongly supported the hikes for polyether polyols.

Cost pressure is outweighing current weak demand for polyols and downstream flexible urethane foam products, according to participants.

However, market participants anticipated modest but gradually improving business in 2010 over 2009.

US flexible slabstock conventional polyols prices were at $1.07-1.14/lb delivered (DEL) in bulk, according to global chemical market intelligence service ICIS pricing.

Polyols along with isocyanates are key raw materials in the production of polyurethane foams.

US polyether polyols producers include Bayer MaterialScience, Dow and BASF.

($1 = €0.75)

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By: Ron Coifman
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