03 January 2014 23:59 [Source: ICIS news]
LONDON (ICIS)--European propylene glycol ether (PGE) prices are expected to rise in January because of an increase in feedstock costs, market sources said on Friday.
Distributors in the market said producers were offering rollovers from December for early loading until 7 January, but expect prices to increase next week when the market has fully returned from the Christmas holiday period.
“We had rollovers for loading until mid-next week. Starting on 6 January we will get slightly higher prices,” a distributor said.
A producer said it will look to recover some margins this month following the €20/tonne (€27/tonne) increase in the January feedstock propylene contract price.
“We are facing a lot of pressure because methanol moved up significantly in Q1 so looking to cover some escalation [in that price],” a producer said.
The first-quarter methanol contract price was settled at an increase of €37/tonne in December.
Methoxy propanol (PM) spot prices are €1,320-1,360/tonne free delivered (FD) northwest Europe (NWE), and methoxy propanol acetate (PMA) spot prices are €1,470-1,490/tonne FD NWE according to ICIS.
It is too early to see any change in demand levels from 2013 due to the majority of players still being on vacation.
A producer said its December 2013 demand was stronger year on year compared to 2012, and was hopeful that trend would continue into January.
($1 = €0.73)
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