Spot prices of plasticizers in Europe hit a 13-month high, no signs of slowing down at the end of the year

As sources began negotiations on European plasticizer prices in December, spot prices have reached a 13-month high, and there are no traditional signs of a slowdown at the end of the year

The balance of supply and demand pushed up prices, and spot prices reached the level of October 2019

A seller said: "This is not a price issue, but a supply issue

Supply: Inadequate preparation for unusual year-end

Usually at this time, European sellers are usually preparing for the end of the business at the end of the year

In 2020, due to the impact of the epidemic, many changes have taken place in the traditional procurement model, and the recent balance of supply and demand is driving the market upward

The supply of diisononyl phthalate (DINP) and dioctyl terephthalate (DOTP) is relatively tight for some buyers, although contract buyers will think they can find materials that meet their needs

According to sources, DINP's raw material isononanol (INA) is restricted in Europe, and non-integrated manufacturers are facing some shortages

DINP and DOTP still clearly lack materials imported from South Korea

As SIBUR continues to focus on its domestic demand, DOTP imports from Russia are still relatively small

The health of local demand will reduce the number of Turkey entering northwestern Europe and the south in the short term

Recently, LG's cracking furnace in South Korea experienced an unexpected shutdown.

Demand: "Not to talk about pricing"

Persons with substantive news said that demand is stronger than expected; consumption in many industries is good, and sales of various buyers have returned to the level of the same period in 2019

Facts have proved that the fourth quarter will indeed bring about a strong demand pattern, which many people have prepared, so any kinks in the supply chain will soon be felt

A manufacturer said: "We sell what we produce

The downstream polyvinyl chloride (PVC) market is restricted, which in turn inhibits some demand, but it depends on the application

Nonetheless, some sources said that to find the required PVC, this is "a battle going on every day and every week

Although the demand was good, there was no structural increase.
The source pointed out that the market was mainly driven by supply constraints, but facts proved that the purchase pattern at the end of the year was different from the usual trend
.

Hoarding, not destocking

For many people, the traditional model of low inventory at the end of the year no longer exists this year; buyers are eager to have sufficient inventory of products at the end of the year for use at the beginning of the year
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Concerns about the impact of the coronavirus epidemic prompted many to change their strategies at the end of the year; some sources said that these buying patterns may continue until the vaccine is widely distributed
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British consumers are facing additional pressure to prepare for Brexit, and one buyer said it is very difficult to stock up
.

With the end of the transition period and the introduction of new tariffs, supply and logistics will be disrupted in the first week of January, which is a bit disturbing
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