15 May 2013 15:40 [Source: ICIS news]
LONDON (ICIS)--The price gap between imported Asian and domestically produced European-origin polycarbonate (PC) has widened and is now about €100-200/tonne ($130-260/tonne), sources said on Wednesday.
European spot PC is offered at €2.20-2.30/kg free delivered (FD) northwest Europe (NWE), while Asian PC is offered at €2.10-2.15/kg FD NWE.
Two European traders have secured material from South Korea at €2.05-2.10/kg CIF Genoa and CIF Felixstowe. This does not include mainland delivery costs, which are about €40-60/tonne depending on the distance from the port.
One South Korean seller is offering spot material at €2.05-2.15/kg CIF Rotterdam, but it said that demand is extremely poor and its sales to Europe have dropped by a massive 90% compared with the same quarter last year.
"Even though there is a gap between Asian and European prices, demand is so dire in Europe that buyers are just not interested," it said.
South Korea and the EU have had a free trade agreement since 2011, which gives South Koreans some price advantage over other Asian sellers. European producers have so far been able to keep out Asian imports by maintaining low prices, but if they are too adamant about raising prices in the future, the price gap between the two regions will widen and the potential for increasing imports will grow, sources said.
($1 = €0.77)
Follow Janos Gal on Twitter @janosgalICIS
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