04 November 2011 19:50 [Source: ICIS news]
BOGOTA (ICIS)--US monopropylene glycol (MPG) prices fell for October because of cheaper feedstock, weaker demand and worries about volatility in the world's economy and energy markets, sources said on Friday.
October prices for industrial-grade MPG were 102-108 cents/lb ($2,249-2,381/tonne, €1,619-1714/tonne), as assessed by ICIS.
The October price was taken down about 5-6 cents/lb from September because of a double-digit decline for October propylene contracts and softer demand, blenders and distributors said.
US propylene contract prices for October settled down 14 cents/lb from September, market participants said. Market participants had predicted a substantial drop in contract prices as a result of a build-up in refinery grade propylene (RGP) inventories.
MPG prices for much of the year have been driven by the soaring costs of feedstock propylene, which raised the cost of production and forced producers to raise prices or risk narrowing margins.
The MPG market began reverting back to being a demand-driven market in recent months amid softening propylene values.
US MPG producers include Arch Chemicals, Dow Chemical, Huntsman and LyondellBasell.
($1 = €0.72)
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