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Updated to Q4 2016
Europe monopropylene glycol industrial grade (MPGI) spot prices moved up during the fourth quarter, driven mainly by reduced supply and winter demand.
In the first half of October, the mid-point of the MPGI assessment was €980/tonne, and it was €1,125/tonne in the first half of December.
In October and November, prices firmed because of reduced spot availability, which was linked to BASF not being active in the spot market until late November, due to its maintenance turnaround, and taking into account the explosion at its Ludwigshafen site in Germany in October.
The pull into the downstream winter sectors, along with ongoing healthy UPR demand also supported the upward price movement. The rise in upstream propylene contract costs in October and November was also a contributory factor in the upward price move, although it was more market related. In the first half of December, MPGI spot prices continued to rise, despite the decrease in propylene contract costs, based on reduced spot supply, because of some upstream propylene oxide (PO) output constraints and winter demand.
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