16 November 2010 23:59 [Source: ICIS news]
LONDON (ICIS)--European epichlorohydrin (ECH) contracts for November have settled at rollovers to minus €10/tonne ($14/tonne), as weakened demand from the downstream epoxy resin sector offset the higher upstream propylene price, buyers and sellers said on Tuesday.
The majority of players agreed that €1,740/tonne was representative of the lower end of the market, while €1,800/tonne remained the high side of trading.
ECH producers were aiming for at least stable prices, as the November contract for propylene settled up by €18/tonne from October at €938/tonne FD (free delivered) NWE (northwest Europe).
Several producers said there was a slight decline for some accounts given the lengthening market.
Any decrease achieved was minor, sources said, although a couple of buyers said they managed to negotiate price decreases of €15-20/tonne given improved availability.
Some sources said they are worried that the weakening demand from the epoxy sector will continue into December, when downstream companies shut down for the holiday season and carry out maintenance work, with winter also traditionally quiet in the construction industry.
“The pressure is really on until for the rest of the year. The market is getting slow, especially for epoxy resins,” said producer.
($1 = €0.74)
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