06 August 2010 23:59 [Source: ICIS news]
LONDON (ICIS)--European propylene glycol ether spot prices continued to rise by €10-50/tonne ($13-66/tonne), as tight supply forced offers upwards, sources said on Friday.
Propanol methoxy acetate (PMA) was especially tight, sources said, with numbers having already risen €15-50/tonne last week. Prices were now assessed at €1,400-1,500/tonne FD (free delivered) NWE (northwest Europe), according to ICIS data.
While less bullish, propanol methoxy (PM) was also assessed up by €20/tonne this week, to €1,270-1,320/tonne FD NWE.
One manufacturer said there was structurally less PMA than PM production in Europe, and restrictions in feedstock propylene oxide (PO) meant supply would remain tight until the end of September and sales would have to be tightly controlled.
Buyers were sceptical just how dire the feedstock situation was, however, as the propylene contract price was down by €38/tonne for August. They felt that producers were artificially restraining supply and making big margins in the process.
Nevertheless, business was still being reported in these ranges, as market players said they had seen very little of the traditional August slowdown due to holidays in southern Europe.
“This is absolutely extraordinary, and I don’t say that very often,” said one astonished producer.
($1 = €0.76)
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