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.
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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.
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