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Plasticizers - Europe June 2017

by ChemOrbis Editorial Team -
  • 29/06/2017 (19:03)
In Italy, June business in the plasticizers market was wrapped up mainly with strong increases of €130-200/ton for DINP and DIDP while DOTP prices registered relatively smaller increases of €50/ton from May. Now all eyes are on new offers for July.

The price ranges stand at €1400-1600/ton for DINP and DIDP and at €1485-1480/ton for DOTP, FD, 60 days.

Converters have already secured their monthly needs as supply issues continued to exert an upward pressure on plasticizers for June. However, players agree that availability might see some relief in July now that Evonik lifted its force majeure on butadiene production from Belgium on June 16 .

A compounder, who purchased some DINP with increases of up to €150/ton over last month, thinks that producers will apply small increases for July given the persistent shortness, even though propylene contracts settled €50/ton lower as of Thursday afternoon. Another compounder decided to skip purchasing from the local market as he found more competitive DOTP prices in the import market. The buyer commented, “Supply is very short and suppliers are taking advantage of it. As for July, we think that demand might slow down since converters have mostly secured extra cargoes in the previous months. Therefore, we expect a stable trend.”

Other buyers, meanwhile, expect some decreases on plasticizers prices in July as feedstock prices are low and supply levels started to increase. A converter in Germany, who purchased some material with increases of €130/ton for DINP and €50/ton for DOTP, thinks that prices will decrease in July as Evonik has returned to the market and one of the Central European producers is also back from a planned maintenance.

Korean DINP is reported at €1290-1450/ton while DOTP stands within the range of €1400-1480/ton, DDP, 60 days. Turkish DOTP was traded at €1385-1422/ton DDP. Several buyers decided to purchase from the import market this month as the gap between the local and import markets reached almost €110/ton.

Expectations are mixed for July. Some players expect a stable to slightly firmer trend as plasticizers prices might remain under an upward pressure stemming from short supplies. On the other hand, softer feedstock costs combined with expectations for a relief in supply levels in the face of some restarts might put a cap on possible hike attempts for July.
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