25 April 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--Second-quarter polycarbonate (PC) contract prices have increased by €0.15–0.30/kg ($0.20–0.39/kg) because of continued feedstock cost increases in the first quarter of 2012, market participants said on Wednesday.
Moulding grade PC settled at €2.80–3.00/kg free delivered (FD) northwest Europe (NWE), up by €0.20–0.30/kg, while extrusion grade PC settled at €2.70–2.80/kg FD NWE, up by €0.15–0.20/kg.
PC manufacturers have been complaining of eroding margins and said they will have to continue increasing prices to avoid production becoming unsustainable in the long term.
“So far PC prices have only been tracking feedstock cost increases and we are trying to bring up margins to a level that is sustainable, closing the gap with raw materials,” a producer said.
Buyers said that the market is balanced to long and it is not difficult to buy PC. On the other hand, producers said demand was very strong and the market was tightening because of ongoing maintenance at two suppliers.
Demand from the automotive industry is good and the construction sector is doing well because major sporting events have required the building of several stadiums and other structures, producers said.
$1 = €0.76
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