European PP buyers reluctant to pay increases beyond C3 hike
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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