Mideast polyether polyols rise $10-50/tonne on high feedstock cost

SINGAPORE (ICIS)–Spot polyether polyols prices in the Middle East increased this week as Asian and European suppliers raised offers in an attempt to pass on the high cost of feedstock propylene oxide (PO) to their customers, market sources said.

On 6 February, flexible foam was assessed at $2,350-2,450/tonne CFR (cost and freight) GCC (Gulf Cooperation Council)/East Med (Mediterranean), up by $50/tonne at the high end of the price range compared with the previous week, according to ICIS.

Rigid foam prices were at $1,950-2,050/tonne CFR GCC/East, up by $10 at the high end over the same period, the data showed.

Suppliers quoted offers at up to $2,500/tonne CFR GCC/East Med for spot shipments amid shorter supply, they said, citing production problems at Dow Chemical’s plant in the Netherlands.

The plant in Terneuzen was heard to be running at reduced capacity because of an unspecified mechanical problem two weeks ago, market sources said.

From Chinese suppliers, which just returned to the market late in the week, offers to the Middle East were heard at up to $2,400/tonne CFR GCC.

China was on holiday from 31 January to 6 February for the Lunar New Year celebration. Market players expect a clearer market outlook from next week.

A Chinese producer said it plans to push for a $50/tonne price increase for polyether polyols in the Middle East, depending on developments in the domestic market.

Buyers, on the other hand, were heard to be amenable to higher prices in procuring material, despite early resistance.

Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections