31 May 2013 13:18 [Source: ICIS news]
LONDON (ICIS)--Demand for methyl ethyl ketone (MEK) in Europe is stable at a low level, but views regarding June demand are mixed, sources said on Friday.
One buyer said: “Demand is currently low, but steady. I would also say that it's now gaining some momentum. Prices should start to slowly push upwards, as they are rock-bottom low. Manufacturers are currently losing money on this commodity,” it said.
MEK in the UK is at £950-990/tonne (€1,105-1,151/tonne) FD (free delivered) UK, while material in Europe is at €1,100-1,130/tonne FD NWE (northwest Europe) this week. “We’ve done some business, but it's been few and far between,” a trader said.
Weak macroeconomic conditions and colder-than-usual spring temperatures in Europe have slowed solvent demand, particularly from the coatings and construction industries, which typically see a pick-up in activity in March and during the warmer months.
Sources said material is easily available, and some said offtake will taper off during the summer holidays.
A UK trader said: “Nobody’s painting garden fences or doing the DIY they should be doing. I like to think it could improve in June, but people are now looking at summer.”
The buyer said: “As for demand last year at the same time, it was definitely higher. It was probably 30-40% higher last year, but, once again, I see it slowly picking up in June.”
MEK spot prices at the end of May 2012 were averaging €1,420/tonne FD NWE.
Another UK trader said demand would be stable in June. It said: “I’m certainly not expecting demand to pick up much.” It added that any pick-up was likely to be “bitty and spasmodic”.
($1 = €0.77, €1 = £0.86)
|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