Awaited large PP hikes revealed in Italy
A West European producer reported revealing February PP contract prices with €65-70/ton increases and added, “We think that demand will be quiet as some of our customers built stocks in December and they are planning to run down their inventories.”
A distributor reported, “Our regular West European supplier’s availability is short this month, particularly for PPBC. Their spot offers have surged by €70-80/ton compared to January levels, but we expect these hike targets to be revised down if buyers show resistance to such hikes.”
Another seller reported offering with €80/ton increases in line with his supplier’s guidelines. However, the seller thinks that his supplier will slightly revise their offers down to €60/ton by the end of the month on regular stock levels on his supplier’s side.
A different distributor, meanwhile, said that he has low stock levels for this month and that’s the reason why they are firm on their current offers. The seller commented, “We are not willing to give any discounts and revising our list prices for homo PP below €1200/ton is unlikely as we would be losing margins. The PP market is under an upward pressure, which shows no signs of losing steam.
Considering upcoming cracker and plant shutdowns in Europe, we expect the firming PP trend to be extended from February into the March-April period as well. Furthermore, import materials are less competitive now that overseas producers prefer to export to the Asian markets while Italian converters’ stocks are not high. Therefore, we expect to see better demand.”
In Italy, PP prices are reported at €1190-1300/ton for PPBC and at €1090-1220/ton for homo PP, FD, 60 days.
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