Stable to weakening Dec price trend seen for Europe plasticizers

04 December 2013 23:59  [Source: ICIS news]

LONDON (ICIS)--December prices for plasticizers are expected to roll over or decline in spite of the €30/tonne ($41/tonne) increase in the December propylene contract price, market participants said on Wednesday.

The propylene contract price was settled at €1,110/tonne FD (free delivered) NWE (northwest Europe).

Demand will be significantly lower this month on account of the approaching end-of-year holiday season, and as a result, buyers and sellers will pay close attention to inventory management.

One dioctyl terephthalate (DOTP) producer said that demand is very low on account of seasonal shutdowns, while Asian imports present a challenge to domestic suppliers. As a result, prices are likely to roll over or decline slightly in the case of large consumers, the source said.

A second DOTP producer said that December prices are being concluded at rollovers to decreases of €20/tonne, while sales volumes are low but typical for the time of year.

One dioctyl phthalate (DOP) producer said it is targeting stable prices for December. Another is seeking to raise its prices, but acknowledged that this is unlikely to be achievable.

A producer of DOP, diisononyl phthalate (DINP) and dipropyl heptyl phthalate (DPHP) said its prices are falling by €20-30/tonne this month.

A DINP and DPHP producer said its prices are rolling over for December, while sales volumes will be down by 20% compared with November.

A second DINP and DPHP producer described rollovers and decreases of €10-20/tonne for higher-priced accounts.

A Turkish DOP and DINP producer said that prices will rise by around €30/tonne on higher oxo-alcohol costs, and suggested that demand should increase as buyers try to pre-empt January price increases.

A buyer of DINP and DPHP said it had received December price offers in a wide range, from rollovers to decreases far in excess of what it had anticipated. Agreements had yet to be finalised, the source noted.

A DOP and DINP buyer expected a small reduction that would bring its prices into the low €1,500s/tonne FD NWE, based on sellers' wish to secure additional orders.

A DINP buyer in the UK said one of its suppliers had lowered its price by £15/tonne for December on good supply.

A reseller in southern Europe was expecting December prices to roll over on slow demand.

Spot prices were assessed by ICIS at €1,520-1,550/tonne FD NWE for DOP, €1,540-1,580/tonne for DINP, €1,595-1,625/tonne FD NWE for DPHP and €1,510-1,560/tonne FD NWE for DOTP.

($1 = €0.74, €1 = £0.83)

By: Samuel Weatherlake
+44 20 8652 3214

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