14 August 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European flexible polyol contract prices have rolled over in August despite a €50/tonne propylene feedstock increase because of subdued demand due to the summer holiday period and economic factors.
Flexible polyol contract prices in August have been assessed unchanged from the previous month between €1,670-1,730/tonne ($2,227-2,307/tonne) FD (free delivered) NWE (northwest Europe), according to ICIS.
Market sources on the sell side attempted selective prices increases but were unsuccessful as competition in the market was fierce as many buyers are on holiday.
A buyer said prices rolled over due to the holidays but also because the state of the economy is weaker than in previous years.
A second buyer said that although some economies are improving, overall the continent is still struggling and there is a clear north-south divide.
Flexible polyol supply remains plentiful and the downstream bedding and furniture sectors continue to suffer amid low seasonality, however, demand for these sectors is expected to increase in September.
Producers are looking to increase prices next month but this will depend on demand levels and feedstock prices at the time.
Rigid polyol contract prices have also been agreed steady at €1,980-2,050/tonne FD despite the feedstock increase.
Market sources said that although demand is reasonable and in line with expectations, market player absences make it too difficult to alter prices this month.
($1 = €0.75)
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