15 November 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European propylene oxide (PO) prices fell by €24/tonne ($32/tonne) for November business, in line with the traditional 80% of the propylene feedstock price, despite talk of a supply shortage for both chemicals, buyers said on Friday.
A producer had noted last week that availability of PO was lower than it had experienced in at least two years due to maintenance outages. Demand for the majority of PO derivatives in the fourth quarter, it said, was stronger than expected.
Despite this, it was unable to achieve a rollover in prices but was able to conclude some freely negotiated business at €1,500-1,610/tonne FD – slightly higher than the formula-based range.
A buyer confirmed its prices were within the formula-based ranged today, having concluded no freely negotiated business. Despite talks of low availability, it said it is receiving its contracted volumes without any restrictions. It added demand for coatings was weak, meaning that shutdowns will not have any effect on the market.
A second buyer also said it is able to acquire all the PO it needs and demand for surfactants is strong.
($1 = €0.74)
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