12 November 2010 23:59 [Source: ICIS news]
LONDON (ICIS)--European propylene oxide (PO) formula and freely negotiated contract prices rose by €14/tonne ($19/tonne) in November, as higher feedstock costs were played off against largely balanced market conditions, market players said on Friday.
As such, November PO was assessed by ICIS at €1,412–1,502/tonne ($1,934–2,058) FD (free delivered) NWE (northwest Europe).
Supply was sufficient, although one manufacturer maintained that there was still some residual shortness in southern Europe, as operating rates and stocks still needed to return to normal after the recent French strike.
Merchant and derivative PO demand was holding up well, although there were a few signs of slight slowdown on the buying side.
Formula-related PO contract prices increased in November, in line with 80% of the propylene feedstock movement.
Freely negotiated PO followed a similar trend to the formula one was on average, as supply and demand were largely aligned. One manufacturer, however, said it had secured increases ranging from €10–15/tonne for freely negotiated contracts.
Few players were prepared to discuss actual numbers, although there was some consensus that prices were largely with the published range. Numbers below the spread were also heard, but they were not seen to reflect the general market.
By contrast, numbers around €1,500/tonne FD were deemed too high by some, although they were confirmed by others.
($1 = €0.73)
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