Europe MPGI spot prices stable on well-covered market

Source: ICIS News

2019/03/15

LONDON (ICIS)--General European mono propylene glycol industrial grade (MPGI) spot prices were stable this week amid reasonable demand and a well-covered market.

Higher upstream propylene contract costs this month, as well as suppliers' underlying margin considerations, are limiting price flexibility to some extent.

MPGI spot prices were largely quoted this week at €1,300-1,340/tonne FD (free delivered) NWE (northwest Europe).

Some sources mentioned that, while the general tendency was stable, some prices were softening in certain cases amid some competitive pressure.

MPGI demand is ticking over and it is in line with expectations for the time of year.

Demand has been reported lower than expected in the trade sector, attributed to good availability and increased competition.

Other instances of lower demand were season-related, as winter de-icer demand comes to an end, after a relatively uneventful winter.

Meanwhile, there are early signs demand in the downstream unsaturated polyester resins (UPR) sector is picking up seasonally.

In related news, European mono propylene glycol US pharmaceutical (MPG USP) spot prices were steady this week, underpinned by sufficient supply accommodating healthy demand.

Prices stood at a range of €1,400-1,450/tonne FD NWE.

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MPG is mainly used as MPG industrial grade (MPGI) for the unsaturated polyester resins (UPR) sector as well as the surface coatings and glass fibre-reinforced resins industries. The second main MPGI use is in functional fluids such as de-icers and anti-freeze.