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Plasticizers - Europe H2 November 2017

by ChemOrbis Editorial Team -
  • 30/11/2017 (09:15)
In Europe, the plasticizers market maintained a stable to softer trend in the second half of November while December expectations started to emerge more often.

The price ranges for the second half stand at €1230-1410/ton for DINP and DIDP and at €1200-1340/ton for DOTP, FD, 60 days.

A distributor of a West European producer, who sold his volumes with rollovers to decreases for November, thinks that demand will slow down further in December while the outlook is still unclear. An agent selling Central European material said, “We expect small decreases of €20/ton in DINP and DINP prices especially on the high ends while DOTP prices are likely to remain stable.” Another trader has already started to sell his December quotas for Turkish and South Korean DOTP at rollovers as he projects a stable trend amid firmer energy prices and softer spot propylene costs.

Converters, meanwhile, have wrapped up their November business with rollovers for DOTP and decreases of €20-30/ton for DINP and DIDP prices. They are currently waiting for the new propylene contract for December amidst weak year-end demand and short working days. A buyer, who purchased his November material from the import market at competitive levels, said, “We think that December prices will remain stable as there is no reason for increases. Moreover, import materials are still being offered at competitive levels thanks to the favorable parity.” Another buyer also purchased his November volumes from overseas suppliers, assuming that DOTP prices will be rolled over in December as he believes that they hit the bottom.

In the import market, Turkish DOTP has been reported within the range of €1180-1220/ton DDP, 60 days, which is still considered to be competitive compare to the local ranges.

Locally held South Korean DOTP was traded at €1220-1300/ton FD, 60 days while DINP and DIDP were dealt at €1230-1300/ton with the same terms.

As for December, players agree that DOTP prices might follow a stable path while DINP and DIDP prices have room for further decreases, for European material in particular, which carries a premium over the import market. In addition, an expected slowdown in demand due to the limited working days in December might also play a role in setting the tone of the market.
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