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(ICIS) -- Spot prices of monopropylene
glycol (MPG) in Asia are expected to be stable, with a downside bias, as
producers unload inventory amid uncertainty in the global economic outlook,
market sources said on Monday. “Everybody wants to keep low stocks these days,”
said a Malaysian buyer.
On 2 December, MPG industrial grade (PGI) bulk cargoes were assessed at
$1,700-1,730/tonne (?1,275-1,298/tonne) CFR (cost and freight) northeast
(NE)/southeast (SE) Asia, unchanged from last week, according to ICIS data.
For MPG pharmaceutical grade (PG USP) drummed cargoes, prices were
assessed at $1,900-1,930/tonne CFR NE Asia and $1,920-1,940/tonne CFR SE Asia in
the week ended 2 December, according to data from ICIS. Producers tend to
maintain low inventory levels towards the end of the year to reflect better
profits in their accounting books, a PG USP maker said.
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MPG’s downstream sectors, including the unsaturated polyester resins
(UPR) industry, are mostly procuring cargoes on a hand-to-mouth basis to control
and keep levels of finished goods low, market sources said. Concerns about
global demand amid the eurozone debt crisis, a weak US economy and a slowing
down of China’s growth have been keeping market players in the MPG markets
sidelined.
A major US -based MPG producer, meanwhile, experienced a 20%
month-on-month decline in sales over the same period. The producer is
considering cutting its PGI bulk offers by $30/tonne in December to about
$1,700-1,730/tonne CFR NE/SE Asia, market sources said. UPR is used in products
like sink, pipes and water tanks.
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For PG USP, demand has been mainly stable throughout the year. PG USP is
used in the food and additives, pharmaceutical and personal care sectors. Offers
for PGI from Singapore were slightly below $1,700/tonne CFR SE Asia, said the
northeast Asian producer.
mrcplast.com
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