Europe MPG sees further price erosion on sluggish de-icer demand

LONDON (ICIS)–European monopropylene glycol (MPG) demand from the de-icing sector is weaker than previously projected as temperatures on the continent remain relatively high, market sources said on Friday.

Sellers have also said they are seeing hand-to-mouth purchasing as buyers anticipate further price reductions on the back of weak upstream values.

There is some uncertainty as to price direction in the medium term. While further reductions are expected in the short term, a producer said unstable crude futures and a potentially cold February could pressure prices up. It added, however, this is predicated on propylene falling by less than €80/tonne next month.

A distributor said the de-icing seasonal ordering will be below target regardless of how far temperatures drop going forward. Therefore, it added, it expects further price erosions.

Prices were assessed €20/tonne softer on the low end of the range at €1,250-1,380/tonne free delivered (FD) northwest Europe (NWE).