European plasticizer demand began to rise in April and spot prices strengthened
European plasticizers started the month of April with healthier demand and stronger spot prices.
Early April orders have been strong, with some sellers saying April materials are currently sold out.
One factor is that the Easter holiday will start on April 15, for which buyers are preparing well in advance. Some buyers will temporarily turn off downstream devices for up to a week during the Easter holiday.
Rising raw material costs and in some cases small supply constraints due to upstream constraints, rather than any technical issues on site, have also pushed up prices.
Most buyers received higher DINP, DOTP and DPHP offers in April.
The second quarter is typically the peak period for demand for plasticizers, and April saw a healthy uptick in demand, which most sources see as stronger than March.
"Demand has outstripped our ability to supply it." "Said one DOTP seller.
"The market is finally moving," said another vendor. At the beginning of this year, the same supplier had indicated that the first quarter price -
"We have received some enquiries for May. Possibly because of Easter, some downstream installations will be closed and buyers want to get their May prices by April 19." "One source said.
"Even for Easter, our consumption will be stronger this month," said one buyer.
Whether this trend can continue in April remains to be seen. Spot prices for DINP and DOTP have risen by around 10-20 EUR/t so far, with further price increases likely later this month.
Plasticizers are used in plastics or other materials to give the finished product viscosity, elasticity, softness or other properties.