Europe Jan flexible polyols prices likely to roll over on competition

08 January 2014 16:09 Source:ICIS News

LONDON(ICIS)--The price of European flexible polyols looks set to remain static in January due to inactivity in the market as there is fierce competition for market share in the quiet holiday period.

Most producers are expecting prices to roll over citing competitive reasons but the consensus is that prices would have to rise in February to improve production margins.

“Some [of our] competitors are not moving prices so it is difficult for us to,” a producer said. “We must recover a minimum of €50/tonne [in February].”

Buyers have widely quoted rollover prices but a second producer said it had increased its polyols prices by €40/tonne FD (free delivered) in January but declined to provide any absolute numbers. This could not be widely confirmed in the market.

The price of flexible polyols in December was €1,760-1,830/tonne FD NWE (northwest Europe) and the January price is yet to be assessed.

By Stefan Naidu