16 April 2013 17:41 [Source: ICIS news]
LONDON (ICIS)--European polybutylene terephthalate (PBT) Q2 contract prices are expected to settle at a rollover from the first quarter because of balanced fundamentals, sources said on Tuesday.
“On the one side, some of the raw materials we see movement that supports a slight increase, others a decrease, overall [it’s] balanced,” a PBT producer said.
Some European polybutylene terephthalate Q2 contract prices have already settled at a rollover, buyers and sellers confirmed.
Nevertheless, the majority of negotiations are ongoing.
Although some sources expect upstream butanediol (BDO) Q2 contract prices to increase, they expect this to be counterbalanced by falls in the cost of intermediates, resulting in an overall balanced cost position.
Coupled with this, the majority of buyers and sellers consider supply and demand as balanced. This is because operating rates have been reduced in line with consumption.
Most buyers and sellers said that domestic electrical and automotive end-use demand is weak because of reduced consumer purchasing power. Nevertheless, the majority of producers, traders and consumers said that consumption is stable at Q1 levels.
($1 = 0.77)
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