01 November 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--Prices in the European monopropylene glycol (MPG) industrial grade market firmed on the back of strong demand from the de-icing sector despite a €30/tonne ($41/tonne) fall in upstream propylene earlier in the week, sources said on Friday.
In preparation for the European winter, airports and airlines have been restocking their supplies of MPG industrial grade in recent months which has helped keep prices on an upward trend.
Even the unsaturated polyester resin (UPR) sector, which traditionally tapers off in the fourth quarter, is showing healthy demand.
“I have been quoted increased prices,” a trader said on Friday.
“I tried to negotiate because of the propylene [reduction] but [my supplier] said no because MPG is also quite tight at the moment which I confirmed with another producer who was unable to offer any product in November.”
A producer confirmed it has seen prices rise due to increased demand from the de-icing and UPR which is tightening availability.
“There has been quite a bit of upward movement [on prices], we are seeing strong demand from the UPR sector which we were very surprised at,” a producer said on Thursday.
“De-icing continues to do well of course [and the demand] will not come off in November so the market will be tighter [this month].”
The price of propylene was revised down by €70/tonne in the last two months with a €40/tonne reduction coming in October.
($1 = $0.74)
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