30 April 2010 16:17 [Source: ICIS news]
LONDON (ICIS news)--European propylene glycol ether spot prices firmed a further €30-40/tonne ($39-53/tonne) this week as producers stated on Friday their intent to push through price increases amid a tight market.
Propanol methoxy (PM) firmed by €30/tonne at the higher end of the range, to €1,120-1,180/tonne FD (free delivered) NWE (northwest Europe). Several traders and producers quoted the lower end of the range at €1,150/tonne FD NWE, but buyers stated they could still secure volume at prices lower than this.
Propanol methoxy acetate (PMA) was seen as slightly tighter by the majority of market players and so increased by €30-40/tonne, to €1,250-1,280/tonne FD NWE, according to data from global chemical market intelligence service ICIS pricing.
“We expect the price to drop in June or July so now is the time to get a good price, although we don’t want to be too opportunistic and annoy our customers,” said one producer.
Producers were targeting an increase of €50/tonne in May as they said the market was tight and they were having problems sourcing the feedstock propylene.
A couple of producers also bemoaned low margins and that their demand forecasts had been exceeded for April and due to be surpassed in May.
Buyers and some traders described demand as muted, however, with one distributor saying buying interest was just 50% of normal levels for the month.
“I don’t think the market would accept a €50/tonne increase, €30/tonne is probably more likely,” stated one customer.
($1 = €0.76)
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