Distribution prices for hydrocarbon solvents in Northwest Europe have come under pressure this week due to year-end inventory management by producers, distributor sources said Tuesday.
Some end-users have also started to wind down operations ahead of the Christmas period, further pressuring spot prices.
Solvent toluene and solvent MX truck prices were said to have been offered at Eur630/mt ($676/mt) FD NWE, or Eur10/mt lower than last week despite a surge in the energy complex and rising barge prices for the products.
Solvent naphtha trucks were heard trading at Eur650/mt this week, down Eur20/mt from two weeks ago.
"Producers are trying to push product into the market as they do not want to have too much in their tanks over the new year...this makes it difficult for distributors who do not want to have too much themselves," a European distributor said.
A second distributor said: "All products were under pressure, not because of feedstock developments or supply, but because of destocking...prices always come down in December."
A third distributor said numbers as low as Eur530/mt FCA NWE and Eur545/mt FCA NWE had been talked about in the market this week, though these were for "limited volumes".
