02 August 2013 17:35 [Source: ICIS news]
European producers of propylene glycol ether (PGE) and glycol ether are targeting higher spot prices following hikes in upstream feedstock contracts. |
The propylene contract for August increased by €50/tonne ($66/tonne), prompting PGE sellers to target hikes of up to €30-50/tonne.
So far, prices in the ICIS range have increased by €10/tonne at the upper end to €1,220-1,270/tonne FD NWE for methoxy propanol (PM) and to €1,420-1,470/tonne FD NWE for methoxy propanol acetate (PMA). Further rises could take place later in the month if demand levels increase after the summer holidays.
One producer said that margins had to be improved. “We had to draw a line in the sand. We are willing to sacrifice volume to increase prices.”
Increases have so far yet to be applied across glycol ether markets, although sellers are targeting increases of €20-30/tonne following the €40/tonne increment to the August ethylene contract.
One seller said it had already managed to raise numbers with some customers. “I expect to see more pressure on prices over the next weeks,” one producer said. “It will be possible to increase some of the lower numbers on the market.”
Current spot levels for butyl glycol (BG) stand at €1,280-1,320/tonne FD NWE and at €1,430-1,500/tonne FD NWE for butyl di-glycol (BdG).
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