13 April 2011 23:59 [Source: ICIS news]
LONDON (ICIS)--European April ethanolamine contracts went up by €20-30/tonne because of feedstock pressure and tight market conditions, sources said on Wednesday.
Upstream ethylene prices spiked €200/tonne ($290/tonne) since December and producers were looking to get back margins, particularly on di-ethanolamines (DEA) and tri-ethanolamines (TEA), which had only increased by €30-40/tonne and €100/tonne respectively from December to March.
Mono-ethanolamine (MEA) was considered the shortest of the three grades and several buyers and sellers mentioned increases of around €50-60/tonne from March.
However, the majority of actual prices quoted were within the €1,400-1,450/tonne FD (free delivered) NWE (northwest Europe) range, and so ICIS prices moved just €20/tonne at the lower end of the range.
In contrast, DEA was said to be the longest of the three grades due to weak demand and oversupply. Prices therefore either rolled over or rose slightly, by up to €20/tonne.
Values heard in the market were around the €1,000-1,040/tonne FD NWE level, though a few buyers were still paying below €1,000/tonne FD. The range was assessed at €980-1,040/tonne FD NWE.
TEA grade was fairly balanced, and producers said that customers offered varying levels of resistance to price initiatives.
Everything between rollovers and plus €70/tonne was heard for April contracts, though prices were mostly in line with MEA numbers. A couple of TEA values were still heard in the €1,300s/tonne, and so prices were assessed at €1,380-1,450/tonne FD NWE.
($1 = €0.69)
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