17 August 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--European propylene oxide (PO) contract prices rose by €96/tonne ($119/tonne) in August on higher propylene feedstock costs, market players said on Friday.
PO freely negotiated contract prices also increased by the same amount as seen for formula accounts in August, as higher feedstock costs were weighed against balanced market conditions.
PO contract prices in August were assessed up at €1,478-1,588/tonne FD (free delivered) NWE (northwest Europe).
PO demand remains reasonably good in August in northwest Europe, despite the summer holidays. Players, however, attributed this to some restocking and pre-buying activity, in anticipation of higher upstream costs in September.
One producer said that PO market activity in the downstream polyurethane sector is holding up particularly well in central Europe.
The PO market remains fairly balanced.
There is some market talk that supply could become balanced to tight at the end of August and into September.
The latter is attributed to a possible uptick in demand after the summer holidays, as well as planned maintenance for one main PO facility, which is expected to take place at the end of August for around five weeks.
($1 = €0.81)
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