13 July 2011 23:59 [Source: ICIS news]
LONDON (ICIS)--European July ethanolamines contracts settled between rollovers and €50/tonne ($70/tonne) decreases, depending on grade, because of reduced feedstock costs and an improving supply/demand balance, sources said on Wednesday.
Mono-ethanolamine (MEA) being the shortest of the three grades held its value, but di-ethanolamine (DEA) and tri-ethanolamine (TEA) fell by €20-30/tonne and €50/tonne respectively.
July MEA remains at €1,450-1,500/tonne, DEA is down to €950-1,020/tonne and TEA to €1,400-1,480/tonne FD (free delivered) NWE (northwest Europe), according to ICIS.
Buyers wanted greater declines, more in line with the €95/tonne fall seen in upstream ethylene this month, but producers were resistant, citing limited availability. One producer said it had kept prices on all three grades steady for this reason.
However, several sources expect all three grades to lengthen over the coming weeks as summer holiday shutdowns in July and August restrict buying interest.
A couple of traders said that buyers are holding off from buying too much on contract this month as they expect lower prices in August.
One trader said it is seeing evidence of this already. “The situation is worse as the summer period has started. Everyone is long and suppliers are calling regularly to move cargo,” the trader added.
($1 = €0.71)
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