15 September 2011 06:45 [Source: ICIS news]
(recasts lead and paragraph 2)
By Ong Sheau Ling
SINGAPORE (ICIS)--The spot prices of isocyanates in the Middle East and Africa, which include the prices of polymeric methyl di-p-phenylene isocyanate (PMDI) and toluene di-isocyanate (TDI), have fallen this week in line with the weaker China and European markets, industry sources said on Thursday.
The prices are expected to decline further in the ?xml:namespace>
The spot prices of PMDI and TDI in the Gulf Cooperation Council (GCC) region are lower by $50-60/tonne (€37-44/tonne) or 2.4-2.5% to an average of $1,990/tonne CFR (cost & freight) and $2,390/tonne respectively, after being stable for the past three weeks, according to ICIS data.
Poor market fundamentals in the leading Chinese and European markets have led producers from these regions to seek outlets in the Middle East and
A global major based in
Offers of PMDI to the
Northeast Asian cargoes were offered at prices at the low end of this range, while European material was offered at prices at the high end.
A European producer lowered its offer of PMDI cargoes for October cargoes by $150/tonne to $2,350/tonne CFR East Med, but the price was higher than the mainstream offers heard in the market.
Offers of PMDI for delivery to
A separate global major adjusted its offer of TDI for October directly to foamers by more than $50/tonne to $2,350/tonne CFR GCC/Nigeria.
A South Korean producer offered its TDI for arrival in October at $2,400/tonne CFR GCC/East Africa.
Suppliers of Japanese and South Korean TDI were unwilling to offer at below $2,400/tonne CFR Middle East/Africa because of their eroded margins, despite prevailing buying ideas at $2,350/tonne CFR Middle East/Africa.
Offers of TDI for ex-Europe cargoes were at $2,450/tonne CFR East Med, but foamers were unwilling to purchase amid the volatile prices.
Despite the decline in isocyanates prices in the Middle East and
Looking forward, market players said they are unsure of the price direction in the near future because of the declining isocyanates prices, which were stable in the past few weeks, and the eurozone debt crisis.
The political turmoil in
However, the prices in the African market are expected to be sustained by the seasonal demand from the downstream foam manufacture and construction sectors, where production is expected to pick up at the end of September, according to the market players.
($1 = €0.73)
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