02 May 2014 23:59 [Source: ICIS news]
LONDON (ICIS)--European monopropylene glycol (MPG) spot prices firmed by €10/tonne on the top end of the assessed range due to reduced availability, in part due to the blockade of LyondellBasell’s propylene oxide/propylene glycol facility in Fos-sur-Mer, France, sources said on Friday.
Market participants said reduced MPG availability due to the blockade as well as tightness and a 10/tonne price increase in the upstream propylene market is causing MPG prices to firm.
“We have moved with May price increases and we are holding firm, especially with propylene going up” a producer said. “The signs in the construction and housing sectors are good.”
Mixed view were expressed regarding demand with producers saying it is reasonable to good and buyers noting that a round of public holidays, including May Day, is creating a subdued market.
“Overall, the market is very quiet, lots of people are not working,” a buyer said. “I do not see why prices should increase.”
Despite this, the buyer conceded saw it prices rise to €1,240/tonne free delivered (FD) northwest Europe (NWE), mainly due to the situation the Fos-sur-Mer facility.
Not all players agreed the supply of MPG was critically low. A second buyer which is still in price negotiations with its supplier conceded that prices are firming but only due to propylene and not availability.
“There is plenty of availability, we are getting unsolicited offered for MPG,” the second buyer said.
Prices firmed by €10/tonne to €1,180-1,240/tonne FD NWE.
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