20 May 2010 02:33 [Source: ICIS news]
HOUSTON (ICIS news)--Assessed US polyether polyols prices rose by 7-10 cents/lb ($154-220/tonne, €126-180/tonne) in May on higher feedstock costs, market participants said on Wednesday.
The increases are for all applications including flex, rigid, CASE (coatings, adhesives, sealants and elastomers) and appliances.
One key polyether polyols supplier was said to be successful on implementation of its 15 cents/lb increase nomination.
However, buyers said that three major polyether polyols producers implemented the May price hike mostly at 7 cents/lb.
Posted prices were assessed at plus 7-10 cents/lb, allowing for increases at higher than the generalized 7 cents/lb noted by polyols consumers.
Despite the recent drop in propylene values, the polyether polyols price hikes were driven by earlier increases in feedstock prices. Producers were driven to recover margins from high-priced propylene inventories purchased earlier.
Demand for polyether polyols was gradually improving, with sources noting moderate recovery in automotive applications.
Participants said the furniture and bedding segments had shown an expected seasonal uptick, although overall activity was still slow.
US flexible slabstock conventional polyols prices are at $1.15-1.22/lb delivered (?xml:namespace>
Polyols and isocyanates are raw materials in the production of urethane foams.
Major polyether polyols producers are Bayer MaterialScience, Dow Chemical, and BASF.
($1 = €0.82)
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