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European PP buyers reluctant to pay increases beyond C3 hike

by ChemOrbis Editorial Team - content@chemorbis.com
  • 07/09/2016 (17:22)
Increases exceeding the propylene hike of €20/ton continue to be reported for September PP prices across Europe. A few sellers, who gave competitive offers, have already managed to achieve their hike targets. However, most buyers aren’t rushing to make new purchases and they are showing resistance to hike requests beyond the gain in propylene contracts.

A West European producer is giving September PP offers with increases of €50/ton both in the contract and spot markets. A producer source commented, “We think that we will achieve our hike targets this month as demand is expected to improve. The overall supply is regular.”

In Germany, a distributor reported offering West European PP with increases of €40-50/ton from August and added that his supply is tight for certain grades. Another distributor sold Central European material up €30-40/ton from last month at €1000/ton for homo-PP injection and at €1050/ton for PP block copolymer injection FD, 60 days. The seller noted that he is doing back to back business as demand is rather calm.

A different distributor in the Netherlands applied increases between €25-40/ton on his September PP prices, which are standing at €1100-1110/ton for homo-PP and at €1140-1160/ton for PP block copolymer injection FD, 30/60 days. The seller commented that many buyers are still reluctant to make new purchases. According to him, supply is a bit limited, but the market conditions are balanced for the time being.

In Italy, some distributors issued hikes of €20-30/ton on their September PP prices. A converter bought South European PP block copolymer injection with an increase of €20/ton for September at €1180/ton on an FD basis. Another buyer reported, “Our West European supplier is aiming for increases of €40/ton, but we are confident about closing our deals with smaller hikes of €20/ton in line with propylene contracts. Our stocks are quite high and we are also waiting for our import shipments to arrive.”
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