19 February 2013 17:19 [Source: ICIS news]
LONDON (ICIS)--The European polyacetal (POM) market is being offered spot material from Asia at substantially below European levels, sources said on Tuesday.
Material is being offered on an FD basis into Europe for as low as €1.40/kg ($1.87/tonne), sources said. European spot offers are currently around €1.60/kg, which has caused several buyers to look to Asia to fulfil their spot requirements, they said.
The low-priced offers from Asia were attributed to increased capacity in the region and low upstream methanol prices.
“It's a supply demand thing. There's been an increase in capacity in the Far East... methanol’s quite cheap, so there's a lot more [PBT] material out there. It's inevitable things get squeezed,” a distributor said
Nevertheless, most European POM is sold on a contractual basis, and players said that quantities from Asia were not significant enough to affect contract pricing, even if they continue into the second quarter.
($1 = €0.75)
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