02 October 2013 16:31 [Source: ICIS news]
LONDON (ICIS)--Prices in the European flexible polyols market are expected to stay unchanged or rise by smaller margins than previously projected due to the €40/tonne propylene feedstock drop last week, sources said on Wednesday.
A major producer said it had achieved an increase of €50-60/tonne ($68-81/tonne) in September and had hoped to push for a further rise in October.
“Because propylene came down, [further] polyols [price] increases are not possible,” the producer said.
“Some [other] sellers pushed for lower increases in September [and] they are now increasing [their prices again] in October.”
Other producers who had implemented lower price increases last month managed to increase their prices between €30-40/tonne in October.
Despite the feedstock decrease, producers said there was still a need to recover poor production margins and the October price increases were boosted by increased demand from the bedding and furniture sector.
“The [price] increases were remarkable easy to get,” a second producer said. “Demand must be good, we did get some information that [other producers] were not able to supply as much as is needed. The market is not awash with product and the material is not long.”
A buyer said it had to accept a price increase of €30/tonne despite the propylene reduction, making it a combined increase of €70-80/tonne, bringing its purchase prices up to €1,750-1780/tonne. A second buyer said it saw an October increase of €50/tonne to €1,700/tonne.
“Sellers have been firm on pushing [the] increases,” a third buyer said.
The current ICIS range remains representative of September business and is currently quoted at €1,700-1,770/tonne FD (free delivered) NWE (northwest Europe).
Propylene prices went up by €110/tonne between August and September to €1,150/tonne before coming down to €1,110/tonne in October.
($1 = €0.74)
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