A UK consumer of DOTP said it has agreed rollovers for June, and noted that DINP is being aggressively offered
European producers of dioctyl terephthalate (DOTP) said on 4 June that they have agreed price rollovers for June with their customers.
Some producers of other plasticizer grades were attempting to raise prices in line with the propylene increase for June, although buyers were resisting their efforts to pass on the higher costs. The propylene contract was concluded at €1,160/tonne FD (free delivered) NWE (northwest Europe), up by €10/tonne from May.
One DOTP producer said it has rolled over all of its prices from May, based on good supply. The source noted that demand is more robust than it was last month, but acknowledged that this was not enough to support higher prices. A second DOTP producer said its customers had accepted stable pricing for June, and that demand is acceptable following a lacklustre spring season. There is still some pressure from imports, but not as much as in recent months, it observed.
A dipropyl heptyl phthalate (DPHP) producer said it is targeting a small increase for June to cover the increased cost of propylene, but buyers have countered with proposals for a rollover. Demand is steady, the producer added.
A fourth plasticizers producer said it is attempting to raise its prices by €10-20/tonne, but is finding this very difficult on account of competitive pressure at a time of flat demand. The source confirmed that DOTP is a more resilient market than diisononyl phthalate (DINP).
A Turkish producer said that European demand in May was below expectations, and sales volumes in June are likely to be at a similar level. The source said it had agreed to lower its DOTP prices by €10-20/tonne for June.
Similarly bearish sentiment was indicated by a reseller, who described a well-supplied market with DINP under greater pressure than DOTP. The source expected largely stable prices despite competition, but acknowledged that there could be some erosion.
Buyers confirmed that DINP prices are under pressure, while DOTP sellers are attempting to pass on the propylene rise.
A UK consumer of DOTP said it has agreed rollovers with its suppliers for June, and noted that DINP is being aggressively offered by at least one producer.
A plasticizers buyer in eastern Europe expected stable prices for June, although producers are targeting a small increase. Demand in May was weaker than expected, but June looks stronger, the source added.