Price and market trends: Europe plasticizer prices poised to fall

08 November 2013 10:00  [Source: ICB]

Some November prices have been agreed at decreases

A downward trend is widely expected in European plasticizer prices following the settlement of the propylene November contract at a decrease of €30/tonne ($41/tonne) from October, market sources said on 30 October.

In addition to the propylene drop, the November orthoxylene (OX) contract price is also expected to fall.

Some November plasticizer prices have already been agreed at modest decreases from October, sources said.

A buyer of diisononyl phthalate (DINP) and dipropyl heptyl phthalate (DPHP) said its November prices will fall by at least €20/tonne, although larger decreases are a strong possibility.

Demand is lower for November, but no more than expected for the time of year, the source added.

A dioctyl phthalate (DOP) and dioctyl terephthalate (DOTP) consumer said it had secured DOP price cuts of €30/tonne from a Turkish supplier and £15/tonne (€17/tonne) from a European seller.

The source expected DOTP prices to follow a similar trend, adding that demand is fairly stable.

A reseller expected its November price for DINP to decline by £15/tonne, although this was not yet confirmed.

The source also expected a fall in DOTP prices, although it acknowledged that end-user demand is performing quite strongly.

On the selling side of the market, a DOP producer said it does not expect to be able to maintain prices at October levels, but hoped to avoid a full pass-through of the November feedstock cost decrease.

A DPHP producer said it has offered a reduction of €10/tonne for November, but felt that buyers are likely to target more substantial price cuts. The source noted that it had been unable to pass on all of the raw material price increases it sustained during the autumn.

A producer of DOTP suggested that prices could decrease by €10-15/tonne, although it had not yet finalised its November price targets.

The DOTP market remains well-supplied, the source said, with competitively priced Asian imports representing the greatest challenge.

A Turkish producer of DOP and DINP said its prices are rolling over for November amid good demand.

Spot prices were assessed by ICIS on Wednesday at €1,540-1,570/tonne FD (free delivered) NWE (northwest Europe) for DOP, €1,560-1,600/tonne for DINP, €1,610-1,640/tonne FD NWE for DPHP, and €1,530-1,580/tonne FD NWE for DOTP.

By: Samuel Weatherlake
+44 20 8652 3214

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