17 July 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European flexible polyol contract prices have been pressured lower in July, even though propylene feedstock prices rolled over, because of subdued demand for economic and seasonal reasons and resulting plentiful supply, market players said on Wednesday.
Price reductions of €20/tonne for flexible polyol prices in July were largely quoted. As a result, flexible polyol contract prices in July have mainly been assessed between €1,670-1,730/tonne ($2,197-2,276/tonne) FD (free delivered) NWE (northwest Europe), according to ICIS.
There were lower numbers for flexible polyols in July from a few buyers in northwest Europe and also in some cases in central and southern Europe. However, this was not seen to be representative of the general trend in northwest Europe.
Larger price drops of €30-40/tonne were mentioned, but there was insufficient market confirmation to substantiate this.
There were also rollovers for flexible polyol contract prices in a few cases in June, but this was an exception.
Flexible polyol supply remains plentiful and the downstream bedding and furniture sectors continue to suffer amid reduced consumer confidence and spending, as well as low seasonality. In contrast to flexible polyols, rigid polyol contract prices have been agreed steady at €1,980-2,050/tonne FD.
The general stable sentiment for rigid polyols was supported by some seasonal uptick in the downstream construction sector and largely balanced supply.
($1 = €0.76)
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