Europe second quarter polycarbonate contracts up 6-10% on supply

20 April 2011 23:59  [Source: ICIS news]

LONDON (ICIS)--European polycarbonate (PC) second quarter contracts settled at an increase of €0.20-0.30/kg ($0.29-0.43/kg) from the first quarter, because of tight supply, buyers and sellers said on Wednesday.

Second quarter PC contracts settled at €3.20-3.25/kg for general purpose moulding grade, and €3.13-3.18/kg for general purpose extrusion grade.

Some players saw rises of up to €0.40/kg, but were starting from a lower base in the first quarter, and remained within the above published range.

Low availability is due to difficulties in sourcing feedstock bis-phenol A (BPA), players said.

The market has been further tightened by an absence of imports from Asia following the earthquake in Japan on March 11, which have restricted supply across the region.

Views on demand are divided depending on end-use.

Sources linked to the downstream construction and automotive sectors view consumption as high.

Automotive demand is being bolstered by exports of finished goods to Asia, linked to GDP growth and upwards social mobility in China, sources said.

Construction consumption is increasing because of warmer weather in Europe as higher temperatures typically stimulate building activity.

Nevertheless, sources linked to other downstream sectors, most notably electrical lighting and optical media see demand as flat at a low level.

Low optical media demand is in-line with traditional trading patterns which typically see weak demand during the first quarter.

It is unclear what is causing low buying interest in the electrical lighting sector.

($1 = €0.70)

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By: Mark Victory
+44 208 652 3214

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