European PP market opens September on a firmer note
According to ChemOrbis Price Wizard, the spot PP market was mostly stable in August and softer in July after the sharp increases recorded in June.
PP sellers aim to recover their margins lost in the previous months after closing August deals at mostly unchanged levels. A seller claimed, “We closed our August deals at a rollover instead of higher August propylene settlements. Therefore, we are firm on our hike requests. Plus, demand might improve now that players came back to their desks following the summer break.”
A buyer commented, “We think that producers will be determined to improve their margins as the gap between the monomer and PP prices has narrowed compared to the past years. Hence, PP deals are likely to be concluded with small hikes with the support of firming upstream costs.”
Moreover, scheduled maintenance works at both upstream and downstream units during September-October period are expected to give an upper hand to sellers in seeking hikes.
To track the most updated PP production news, please see PP Production News (For members only)
In Germany, a distributor said, “We are offering with €10/ton hikes while we may apply further increases going forward depending on availability as some producers will have maintenance shutdowns.”
Although the PP market continues to outperform the PE market, some players argue that the market might witness another month of stability if demand remains tepid in Italy.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Local PP, PE offers for July track global uptrend in Saudi Arabia
- Initial ABS prices for July see larger increases than PS in Europe
- Supply constraints spark stronger PE trend than PP in global markets
- ABS, PS uptrend falters in China after H1 2020 ends at multi-month highs
- Stats: China’s total PP imports spike in May; Vietnam and India’s rising shares shine out
- Tight supply drives HDPE, LLDPE gains in Southeast Asia
- European PE markets set for 2nd bullish month on rising costs
- Turkey’s PP and PE markets propelled to a firm start to H2 despite vulnerable conditions
- Asian PVC sees V-shaped recovery in Q2, what will Q3 bring?
- Will capacity additions cast cloud on ethylene upsurge in Asia?