13 September 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European propylene oxide (PO) contract prices increased by €48/tonne ($64/tonne) in September on the back of higher upstream propylene costs, market players said on Friday.
To reflect this, the PO price range in September has been moved up to €1,554-1,670/tonne FD (free delivered) NWE (northwest Europe).
The majority of PO contract business is formula-related and linked to around 80% of the propylene feedstock movement.
For freely negotiated PO business, prices also rose by the same level as for formula accounts, according to market sources.
Despite unconfirmed reports of routine plant maintenance shutdowns that traditionally take place at this time of the year, buyers said they are not experiencing any PO availability issues.
A producer described the market as balanced with increased demand for monopropylene glycol (MPG), a PO derivative, from the de-icing industry.
($1 = €0.75)
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