28 August 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--Most buyers and sellers in the European ethanolamines market have settled their August business, agreeing to a rollover to a small increase over July levels, sources said on Wednesday.
One major producer said it didn’t seek an increase in August, taking into account sales typically slow down during the European holiday season.
Other sellers said they secured a €20-40/tonne ($27-53/tonne) increase for their August business. Most players' demand in August has been seasonally quieter but they expect buying interest to revive in September as players restart their factories after summer shutdowns.
Looking ahead, one major producer said it is seeking at €75/tonne increase in September for all three grades because of the expected rise in feedstock costs such as ethylene coupled with a number of planned ethanolamines plant shutdowns taking place in Europe over the next few months.
Consumers are expected to resist price hikes with some customers saying their downstream markets have been flat in terms of sales and demand.
In August, one ethanolamines manufacturer said its sales volumes were about 10% lower compared with the same period last year as the European economy continues to struggle with rising unemployment and spending cuts.
Sellers of Mexican material in the meantime plan to seek a rollover price for September business. Other European sellers said they plan to pass down any expected increase in ethylene costs.
($1 = €0.75)
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