07 May 2013 23:59 [Source: ICIS news]
Correction: In the ICIS story headlined "Europe Q2 POM contracts settle at rollover" dated 7 May 2013, please read in the first paragraph ...rising feedstock methanol... instead of ...rising feedstock melamine... A corrected story follows.
LONDON (ICIS)--European polyacetal (POM) second-quarter contract prices have settled at a rollover as rising feedstock methanol costs have been counterbalanced by an influx of competitively priced imports into Europe from Asia, buyers and sellers said on Tuesday.
Asian spot material is being offered at $1.42-1.47/kg (€1.07-1.12/kg) FOB (free on board) NE (northeast) Asia for natural grade.
Although traditionally spot material from Asia does not arrive in sufficient quantities to influence contract discussions, some European buyers had been delaying second-quarter negotiations because of low-priced imports.
“Q2 POM a rollover, which is not good for our margins becuase methanol prices are going up, but the pressure from imports is high,” a POM producer said.
May 2013 order volumes are expected to be flat with May 2012 and April 2013 level. Supply and demand in Europe is balanced, adding extra weight to arguments for a contract price rollover.
“May 2013 demand seems to be same level as May 2012,” a POM buyer said.
Feedstock second-quarter methanol contract prices rose by €20/tonne.
Natural grade POM second-quarter contract prices finalised at €2.20-2.30/kg FD NWE (Northwest Europe).
($1 = €0.76)
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