December hints at softening in European PP market
ChemOrbis Price Wizard data reveal that spot propylene prices on FD NWE basis have witnessed a cumulative decrease of €115/ton on weekly average since the downturn began in late September. Data also suggest that spot propylene prices have broken below the €1000/ton threshold for the first time since early May.
Players heard about possible decreases of €10-20/ton in the December propylene contracts in line with lower naphtha costs. According to weekly average data, spot naphtha prices on CIF NWE basis have declined by around $205/ton since the beginning of October to hit their lowest level in more than a year.
A PP buyer from Italy commented, “As for December, we expect a softer trend as the market lacks support from the upstream side.”
Players also think that PP prices might have some room to go down as they already stand at very high levels. A distributor affirmed, “It is highly likely to see decreases for PP as prices are deemed high and lower feedstock costs exert pressure.”
“Overall polyolefin demand is weak in Europe. We do not expect to see a revival in buying interest in December,” a reseller in Switzerland remarked.
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