LONDON (ICIS)--Participants in the European plasticizers market confirmed on Wednesday that the majority of accounts have seen rollover pricing for July.
Although some producers attempted to raise their prices in response to upward movement on propylene and orthoxylene (OX), lacklustre demand and continuing pressure from Turkish and Asian imports made this very difficult.
A dipropyl heptyl phthalate (DPHP) producer described a largely stable price outcome for July, having been compelled to abandon its targeted increases of €30/tonne owing to competitive pressure. The source said it achieved minor increases for some contract customers, and noted that demand is steady.
A dioctyl terephthalate (DOTP) producer said it had aimed for rollovers this month but had accepted decreases in a few cases on account of the summer downturn in demand. There has been little change in terms of import competition this month, the source added.
A producer that had been targeting July increases of €20/tonne said its prices had mostly rolled over on account of competitive activity. Offtake is acceptable this month, it said, but will be low in August.
A buyer of diisononyl phthalate (DINP) and DPHP said its prices were generally rolled over for July. The market is well-supplied, the source said, and slower demand is already apparent in some regions. DINP prices are under greater pressure than other grades, the buyer added.
A UK consumer of DINP said all of its suppliers accepted rollovers, except for one that reduced its price by €10/tonne. Two had initially asked for increases of €30/tonne, the source observed.
Demand fell below expectations in April/May owing to political tension in eastern Europe, but since June has recovered to 120% of average monthly volumes, the source said.
A second UK buyer of DINP said its prices were adjusted down slightly to take account of shifting exchange rates, but were essentially rolled over for July.
Availability remains good and demand is acceptable, the source said, but noted that activity in the construction sector did not pick up during the second quarter to the level that had been expected.
A reseller said that producers were unable to prevent price erosion this month, despite targeting rollovers. Demand is poor and availability is good, the source said.
Spot prices were assessed by ICIS on Wednesday at €1,510-1,540/tonne FD (free delivered) NWE (northwest Europe) for dioctyl phthalate (DOP), €1,520-1,550/tonne FD NWE for DINP, €1,575-1,605/tonne FD NWE for DPHP and €1,500-1,550/tonne FD NWE for DOTP.