05 April 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European April propylene oxide (PO) contract prices have fallen from the previous month on the back of the lower cost of feedstock propylene, market players said on Friday.
April PO prices for formula business dropped €40/tonne ($52/tonne) compared with March levels after the European propylene contract price for April fell €50/tonne from March.
The majority of PO contract business is formula-related and linked to around 80% of the propylene feedstock movement.
To reflect this, the PO price range in April has been moved down to €1,518-1,634/tonne FD (free delivered) NWE (northwest Europe).
The European PO market is described as balanced, underpinned by stable demand and plant turnarounds taking place in the region.
There are some signs of a pick up in demand from downstream polyurethane (PU), although a few end-users in this sector have said demand is not as strong as it should be.
One seller said it has concluded one or two freely-negotiated (non-formula) PO business contracts for April and agreed prices at a €30/tonne drop from March levels. This is a smaller reduction compared with the PO formula business for April which was at minus €40/tonne.
Demand from the de-icer sector was also still apparent last week which ties in with the colder-than-normal spring weather conditions gripping most of Europe, sources said.
By Renee Lawrence
($1 = €0.77)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections