11 October 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--Spot prices for monopropylene glycol industrial (MPGI) grade have firmed to the highest average level since April this year, on the back of increased demand and low availability amongst producers, market sources said Friday.
According to ICIS data, The MPG price range firmed into the €1,200-plus/tonne range for the first time in 6 months despite the fall in propylene feedstock prices confirmed early in October, settling at €1,200-1240/tonne ($1,622-1,676/tonne) FD (freely delivered) northwest Europe (NWE) on Friday. One producer was bullish about MPGI prices going forward in light of increased demand from multiple industries, particularly the de-icing and unsaturated polyester resin (UPR) sectors.
“We are strong across the board [and] we [are not selling anything] in the €1,100s/tonne [range] anymore,” the producer said. “We are seeing a tight market and we are looking for further [price] increases… into the 1,300s tonne.”A buyer in the de-icing industry confirmed that prices are moving up and said that its supplier is aggressively pursuing further increases in the spot market. The de-icing season does not traditionally start until the October-November period of the year.
“Demand is in full swing for de-icing,” the buyer said. “A few countries learned their lesson from the harsh winters [experienced in previous years] and some airports are stocking up early. We are 6 weeks into the season and there is no snow anywhere. The [market] dynamic has changed.”
The buyer went on to say, however, that it is not experiencing any tightness when it comes to its own supply but it is unaware how the rest of the market is faring. A second buyer said there is low availability in the market as two of its regular suppliers have sold out of MPGI entirely.
($1 = €0.74)
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