18 October 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--The October monthly contract price for European propylene oxide (PO) fell in line propylene feedstock fluctuations for the same month, sources said on Friday.
The PO price fell by €32/tonne on both ends of the range to €1,522-1,638/tonne ($2,057-2,215/tonne) freely delivered (FD) northwest Europe (NWE), sources added.
A producer said demand for PO derivatives such as glycols and polyols is strong in October and this, coupled with unconfirmed maintenance outages, is causing reduced market availability of PO.
A second producer said that it is running low on PO, despite being at close to full production capacity, and expects November to be the tightest month of the year.
This sentiment was not shared by a buyer of PO which said demand for glycols is higher than it has been recently but this is expected seasonal ordering that is not causing any upstream contraints. It added there is material available and has not been informed of any shortage by its supplier.
According to a second buyer, there is less volume around due to recent maintenance outages, but it has had no problem obtaining any material and would not describe the market as tight.
PO is formula-related to 80% of the price of propylene but non-formula business does exist on the market. No freely negotiated business was confirmed since the feedstock settlement late last month. In general, this accounts for approximately 5-10% of the overall market.
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