16 July 2013 17:09 [Source: ICIS news]
LONDON (ICIS)--European August epichlorohydrin (ECH) contract prices may fall or roll over in August, depending on feedstock cost developments and consumer bids, sources said on Tuesday.
A major producer will target rollovers in August, but if feedstock propylene prices go up it intends to pass these higher costs on, a source at the company said.
Demand from the downstream epoxy resins industry is lacklustre, and there is little chance this will improve during the latter part of the year, as offtake from the construction and automotive industries is weak.
A second producer in Europe had a relatively strong second quarter, with sales up by 10%. It said demand was stable, albeit at low levels, and the market is no longer than it was in May or June.
A western European buyer said that it will seek to bid for €40-50/tonne ($52-65/tonne) reductions depending on developments in the market during the next three weeks. If its sales increase it will buy more ECH than it did in May and June, but currently does not require any additional volumes.
Demand in August is likely to be very low resulting from a number of holiday shutdowns in Europe.
($1 = €0.77)
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