April PP prices and sell ideas emerging in Europe
Borealis declared force majeure on the PP output from Kallo, Belgium on March 26 following their force majeure declaration in Schwechat, Austria. LyondellBasell reportedly informed their customers about the tightness they were experiencing for PP last week. According to market sources, the company would cancel orders which were above minimum contractual quantities or normal historical levels.
A distributor in Italy raised their April prices by €80/ton to €1340/ton FD, 60 days deferred payment for South European homo-PP, citing higher upstream costs as well as tight supply. Another distributor said that his West European supplier is mulling over increases of €110-150/ton for their April PP prices.
In Germany, some buyers settled their March PP contracts with increases between €105-125/ton and reported facing difficulty in procuring material due to a number of shutdowns in Europe. One of the buyers thinks that propylene contracts might settle up €50/ton for April.
A distributor expressed his April sell ideas for West European PP with increases between €140-180/ton from March at €1340-1380/ton for homo-PP and at €1390-1430/ton for PP block copolymer on an FD Germany, 60 days deferred payment basis. “We expect propylene contracts to settle with larger increases than ethylene and PP hikes could exceed the projected gain in monomers as supply is quite short,” the distributor commented.
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