Europe spot MPG rises as Moerdijk blast spurs buying interest

13 June 2014 23:59 Source:ICIS News

LONDON(ICIS)--European monopropylene glycol (MPG) spot prices have risen on the back of rising orders and falling availability mainly due to fears that the explosion at Shell’s upstream propylene oxide/styrene monomer (PO/SM) unit in Moerdijk, the Netherlands, could have a knock-on effect downstream, sources said on Friday.

Some sellers said demand was rising while others said prices were driven by supply concerns, but the consensus was that prices are rising post-Moerdijk. The unsaturated polyester resin (UPR) sector, used in construction equipment, is sourcing MPG as it seasonally does in the second quarter.

Buyers and resellers acknowledged higher prices. Howerver, there remains some resistance as some players dispute the significance of the Moerdijk explosion in the MPG market and believe there remains enough product available.

Spot prices rose by €10/tonne on both sides of the range at €1,190-1,250/tonne FD (free delivered). One producer, without quoting absolute numbers, said prices were up to €70/tonne higher but this could not be widely confirmed.

By Stefan Naidu