25 January 2013 13:38 [Source: ICIS news]
LONDON (ICIS)--Glycol ethers prices in the UK are expected to rise as the pound sterling falls against the euro on concerns about faltering UK economic growth, distributors in the country said on Friday.
On 24 January, the pound slipped to its lowest against the euro since February 2012. On 25 January a noon snapshot showed a pound was worth €1.16 compared with €1.23 on 4 January, revealing a decline in value of about 6%.
Purchasing a product normally priced in euros means distributors will now have to spend more pounds, a UK-based distributor said.
The next major round of spot sales is likely to happen in early February, when producers come out with fresh offers.
"It will add an increase of £30-40/tonne [€35-47/tonne, $48-63/tonne] to [our purchase] price," the source said.
The estimate takes into account an expectation of a rollover to a small increase in feedstock monomer contract prices for February.
On 25 January, the UK's Office for National Statistics said the country's GDP declined by 0.3% in the fourth quarter of 2012. The data has sparked discussions about a potential "triple-dip recession" in the country.
A second UK glycol ethers distributor said: "Expectations for February now, with a weak sterling, are definitely upward."
($1 = €0.75, €1 = £0.85, $1 = £0.63)
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