Europe propylene glycol ethers stay stable amid feedstock concerns

22 August 2014 22:05 Source:ICIS News

LONDON (ICIS)--Spot prices are unchanged for propylene glycol ethers (PGE), players reported on Friday, with some participants expressing concern about the situation in feedstock markets.

Feedstock propylene oxide (PO) is described as short, with a couple of players expecting prices to increase in the near future. A producer said that this feedstock situation is supporting the glycol ethers methoxy propanol acetate (PMA) and methoxy propanol (PM), noting: "[There is] not sufficient PO to allocate this provides a rock-hard floor to price levels."

The majority of players report that demand for PMA and PM is fairly low, due in part to the slow season, although one producer did describe it as average. A couple of distributors noted that they are having trouble selling their current stocks of material.

Supply is sufficient for players on the market, with one buyer reporting: "[There is] pressure on sellers to make sure they are getting the customers."

One distributor based in Denmark noted that it has seen normal levels of demand in August, since peak holiday season in Nordic countries falls one month earlier in July.

Prices as high as €1,560/tonne FD (free delivered) NWE (northwest Europe) were quoted for PMA, but were not widely representative.

Follow Chris Barker on Twitter

By Chris Barker