Europe MPG prices continue to firm on healthy demand

23 May 2014 23:59 Source:ICIS News

LONDON (ICIS)--Firmer prices in the European monopropylene glycol (MPG) market were supported by growing demand from the construction, coatings and detergents sectors, while mixed views were expressed regarding supply, market sources said on Friday.

The second quarter is seeing traditionally high demand for unsaturated polyester resins (UPR) which are used in the construction sector.

Sellers quoted prices as high as €1,260/tonne FD (free delivered) but this could not be confirmed on the buy side. Similarly, a minority of distribution sources quoted prices as low as €1,160/tonne FD but prices this low could not be substantiated either.

There was no consensus with regards to availability. A handful of suppliers said the market had enough product while others noted there were lingering effects from the recently resolved blockade of LyondellBasell’s facility in Fos-sur-Mer, France, as well as unconfirmed maintenances.

Prices firmed by €10/tonne on the low end of the assessed range to €1,180-1,240/tonne FD northwest Europe (NWE).

By Stefan Naidu