Europe polycarbonate fourth quarter contracts roll over

13 October 2010 23:59  [Source: ICIS news]

LONDON (ICIS)--European polycarbonate (PC) fourth quarter contracts settled at a rollover from the third quarter amid ongoing tight supply and continued strong demand, buyers and sellers confirmed on Wednesday.

“The fourth quarter was more or less a rollover in most cases,” a producer said.

Prices were unchanged from the third quarter because of stable market fundamentals, sources said.

Fourth quarter contracts settled at €2.90-3.05/kg ($4.03-4.24/kg) for general purpose moulding grade and €2.83-2.98/kg for general purpose extrusion grade, buyers and sellers confirmed.

Contracts were settled on a free delivered (FD) northwest Europe (NWE) basis.

Several players said that they had seen increases of up to €0.20/kg, but added that they were starting from a lower third quarter price level, and prices remained within the above ranges.

The majority of players said that demand remained strong, predominantly from the automotive and optical media downstream industries.

“There is still tight supply and strong demand...we need more material,” a buyer said.

Optical media consumption was high due to pre-Christmas seasonally high activity.

Automotive buying interest was driven by exports to the US and Asia, owing to tight supply in those regions, and latent domestic demand from 2008 and 2009 when automotive purchases were delayed due to the general economic downturn. Automotive consumption was strongest from the leasing industry, sources said.

There were concerns that the weaker US dollar against the euro, and predictions that the dollar could further weaken, would dampen Asian demand, buyers and sellers said.

“Exchange rates movements will affect exports...exports to Asia will be less attractive,” a producer said.

Supply remained tight due to continued difficulties in sourcing feedstock bis-phenol A (BPA), players said.

($1 = €0.72)

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By: Mark Victory
+44 208 652 3214

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