02 August 2013 12:42 [Source: ICIS news]
LONDON (ICIS)--European monopropylene glycol industrial grade (MPGI) spot prices have risen following a lengthy period of decline, despite an expected reduced demand during the August summer holiday period, after the August propylene feedstock contract settled at an increase, market sources said on Friday.
According to ICIS data, MPGI prices peaked in late March at a range of €1,240-1,270/tonne ($1,632-1,671/tonne) freely delivered (FD) northwest Europe (NWE) and have been steadily declining ever since, dropping to €1,130-1,180/tonne on 26 July.
However, on Friday 2 August, MPG prices were assessed around €1,200/tonne to reflect higher upstream costs after the Europe August propylene monthly contract was confirmed at €1,090/tonne on Wednesday, up €50/tonne from July.
“August [holiday period] is usually the worst time of the year to pull this [price increase] off, but we pushed and everybody else did too,” a producer said. “We have been understanding [of the falling prices] for most of the year. [Now] there is market acceptance to the rises, our customers are not arguing with us about it.”
Those in a buying position, however, are hoping to keep prices at current levels going forward despite the feedstock increase.
“We have not settled prices for August [yet],” a buyer mainly dealing in contract business said.
“There might be some early buying from the de-icing industry [but] now its the holiday period in Europe and there will be 2-3 weeks of [plant maintenance] turnaround after that. There is still plenty of stock around so I am looking for a rollover. The feedstock price went up but they [producers] won’t sell so much in the next month”.
MPG producers in Europe include Dow Chemical, INEOS Oxide, BASF and LyondellBasell.
($1 = €0.76)
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