European April ECH prices roll over in balanced-to-long market

08 April 2014 20:21 Source:ICIS News

LONDON (ICIS)--European epichlorohydrin (ECH) prices in April have generally rolled over from March, depending on starting point, reflecting slightly higher feedstock costs and improving downstream demand offset by an oversupplied market and price competition.

The market is balanced to long, although one producer said it is running at a high operating rate, citing good demand from the downstream epoxy resins market.

Another producer said that a €10/tonne increase on feedstock propylene costs in the month has resulted in a €7/tonne increase in ECH prices, effectively a rollover. Furthermore, it noted that following its €90/tonne price hike target in January and February, customers have not been requesting price reductions in subsequent months. It called this a positive sign that competitors are also raising prices.

A buyer said that it received a rollover in April from March prices, citing a price of €1,620/tonne.

Another buyer also said that it had received a rollover on ECH for April, citing a long market and stiff sell-side competition.

By Iain Packham