08 November 2013 19:24 [Source: ICIS news]
LONDON (ICIS)--The stability seen in recent weeks in the European propylene glycol ethers (PGE) market could be coming to an end as signs of lower prices emerge from the distribution market, market sources said on Friday.
Prices for both methoxy propanol (PM) and methoxy propanol acetate (PMA) have been unchanged throughout October, and producers have been successful in rolling over prices into November.
“[November prices] are still fairly stable,” a producer said, adding: “[we have seen] no drag down from the propylene reduction.”
The November propylene contract price fell €30/tonne ($41/tonne), but producers were successful in keeping PGE prices at October levels.
However, one distributor has seen PMA prices ease towards the end of the week.
“Prices are not stable any more. On PMA see a slight drop, in the range of €20/tonne,” the distributor said.
“Some buyers tried to push PM in the same direction, but so far prices are holding stable,” it added.
On the producer side, demand was stable, with one producer saying the projection for its November sales based on month-to-date figures is on target.
In terms of price movements for the rest of the year, the producer said: “Wait and see. We are typically moving into the slow season, feedstocks will be important from now on.”
In the European glycol ethers (EGE) market, demand is stable, keeping prices from following the feedstock ethylene November contract price down.
The ethylene November contract price also fell €30/tonne.
One distributor said prices had eased towards the end of the week by €10/tonne compared with last week, but were still within the above range.
UK EGE demand was also avoiding the seasonal drop off, though prices are expected to ease in coming weeks to reflect some of the feedstock reduction.
($1 = €0.74)
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