30 September 2013 11:21 [Source: ICIS news]LONDON (ICIS)--Buyers and sellers in the European isopropanol (IPA) market offered differing views on Monday on the impact of last week’s fall in upstream propylene costs on the price of IPA.
The European propylene contract price (CP) for October has settled at €1,110/tonne ($1,500/tonne) FD (free delivered) NWE (northwest Europe), down by €40/tonne from September.
Some buyers expect IPA spot prices to fall between €25-30/tonne, as a cost pass-through from the fall in propylene prices, depending on negotiations. The production ratio between propylene and IPA is about 0.75-0.77 tonne of propylene to 1 tonne of IPA.
Buyers said demand for IPA is flat and is still affected by uncertainties over the macroeconomy.
A producer, however, said that there is no justification for a decrease in IPA prices. “This is because the prices didn’t rise sufficiently in September to properly reflect the propylene price then. So in essence, the IPA price is already discounted,” the producer said.
($1 = €0.74)
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