15 January 2014 23:59 [Source: ICIS news]
LONDON (ICIS)--Producers in the European flexible polyols market have rolled over prices from December to January as they wait for a full working month to implement price increases, sources said on Wednesday.
Despite a €20/tonne rise in the January propylene feedstock contract, producers said February will present the best opportunity for a price increase as there were only three full working weeks this month.
One producer said it will look for an increase of at least €50/tonne and add on any potential firming in the price of propylene in order to improve its margin.
Views on demand ranged from normal to weaker than 2013, but the general feeling was that it may be too early to gauge demand trajectory in mid-January because of holidays earlier in the month.
Availability was reported to be balanced-to-tight due to production problems at Dow’s polyols plant in Terneuzen, the Netherlands. However, some buyers maintained they were able to obtain product while others said supply was more than sufficient.
Some sources believe the current range is up to €30/tonne too high, although this could not be widely confirmed.
The price of rigid polyols also rolled over in January as sources said availability remains high, making any potential increase challenging.
A buyer added that demand is weak, however a milder-than-expected winter could precipitate higher demand from the construction sector.
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