LONDON (ICIS)--European monopropylene glycol (MPG) prices were assessed unchanged this week as many in the market believe prices have reached minimum levels after a weak de-icer season, sources said Friday.
Producers and resellers said prices are currently stable and will start to ascend as demand for unsaturated polyester resins (UPR) in the construction sector is due to begin in the coming weeks.
“The margins would not be very sexy for producers if prices went down [further],” a distributor said.
Buyers, on the other hand, believe there is still excess supply in the market which could prompt further decreases and that future prices will depend heavily on the movement of upstream propylene.
“If it [April propylene contract price] drops then MPG prices could go down,” a buyer said.
The European MPG market was assessed unchanged at €1,180-1,240/tonne free delivered (FD) northwest Europe (NWE) this week.
Prices were quoted as low as 1,150/tonne FD NWE but could not be widely confirmed.