15 October 2010 23:59 [Source: ICIS news]
LONDON (ICIS)--European propylene oxide (PO) contract prices decreased by €8/tonne in October, in line with lower feedstock costs, market players said on Friday.
Freely negotiated contracts had also followed a similar formula trend in October, according to some players, who acknowledged some relief from recent price increases.
The October PO range was assessed by ICIS down by €8/tonne between €1,398-1,488/tonne ($1,969-$2,096/tonne) FD (free delivered) NWE (northwest ?xml:namespace>
Rollovers-to-reductions of €10/tonne for freely negotiated contracts in October were also heard in a few cases, but there was insufficient market confirmation to substantiate this.
At the time of the October PO settlements, the European market was described as well-balanced. However, the market has moved shorter in some cases over the last few weeks, according to a few suppliers. This was caused by some reduced upstream and derivative output, resulting from French strike action and increasing captive requirements respectively.
Views on supply from customers were mixed. One buyer in northwest Europe said it was not aware of any supply limitations, but acknowledged that it had small volumes. One customer in southern Europe said it had sufficient stocks, but it was experiencing logistical difficulties for both inbound and outbound deliveries in the region as a result of the strike.
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