Europe ECH prices rollover into August

05 August 2014 23:59 Source:ICIS News

LONDON (ICIS)--European epichlorohydrin (ECH) prices have rolled over from July to August, despite a €20/tonne reduction in feedstock propylene costs in the month, as sellers sought some margin pressure relief, market players said Tuesday.

Sellers noted that margins have been squeezed in recent months by higher feedstock costs and, due to competition with importers, flat ECH pricing.

One seller said that despite the small drop in propylene in August, back to near June levels, ECH customers recognised that producers deserved to recover some lost margin during this quieter month.

“While contract rollovers are fully confirmed on our side, the only potential further discussions that could arise, will be for the very few spot enquiries,” the seller added.

A buyer confirmed a price rollover from July to August, saying that demand is generally lower than other months because of the summer holiday season across much of Europe.

“Prices rolled over July to August. August is always less [demand], holidays everywhere," a buyer said.

By Iain Packham