07 February 2014 23:59 [Source: ICIS news]
LONDON (ICIS)--European monopropylene glycol (MPG) prices fell for the first time since August 2013, as demand from the de-icing sector has been muted due to warmer than expected weather conditions, sources said Friday.
Several producers noted that prices were under pressure from increased availability as a result of fewer orders, despite better-than-expected demand from other downstream sectors such as unsaturated polyester resins (UPR), which are used in construction.
“It is a difficult situation with propylene rolling over and winter has not come,” a producer said. “Not sure what the next weeks will bring, the feedstock will be a big factor.”
Buyers are yet to experience lower prices, however one buyer said it is seeing prices being forced lower.
“We agreed a rollover based on propylene, [however] demand is lacking from the de-icing sector and there is definitely downward pressure in the market,” a buyer said.
Prices have been assessed at 1,200-1,260/tonne FD (free delivered) northwest Europe (NWE), representing a €10 and €20/tonne on the high and low end respectively.
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