11 June 2013 17:06 [Source: ICIS news]
LONDON (ICIS)--European polyacetal (POM) third-quarter contracts are expected to rollover as rising feedstock methanol costs since the start of the second quarter are counterbalanced by aggressively priced material on offer from Asia, sources said on Tuesday.
Second-quarter methanol contract prices increased by €20/tonne ($27/tonne), while POM second-quarter contracts rolled over, eroding margins.
POM margins are too weak to allow prices to decrease, several buyers and sellers said.
Conversely, competitively-priced material on offer from Asia for as low as €1.45-1.50/kg FD (Free Delivered) NWE (Northwest Europe) has meant there is no room to increase prices.
Third-quarter POM contract negotiations have not yet begun in earnest.($1 = €0.75)
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