European PP market remains firm, propylene softens
In France, a distributor concluded some deals with increases of €20-30/ton from August at €1080-1100/ton for homo-PP injection and at €1150-1200/ton for PP block copolymer injection on an FD, 45 days deferred payment basis. “Demand isn’t strong, but our West European supplier is firm on their prices. The overall PP availability isn’t ample while we have sufficient stocks to meet our customers’ requirements,” he noted.
A converter bought West European material at €1000-1020/ton for homo-PP injection and at €1050-1070/ton for PP block copolymer injection FD, 60 days. The buyer commented, “Our suppliers were initially targeting hikes of €50-60/ton, but we managed to close our deals paying smaller increases of €20/ton in line with the propylene settlements. We think that producers might seek to raise their prices in October citing reduced supply. However, we haven’t observed any availability issues considering that many distributors are still holding high stocks.”
A packaging producer in Germany settled his September PP contracts with increases of €20/ton after his suppliers initially asked for slightly larger hikes of up to €30/ton. According to the buyer, demand is good while supply is limited for the moment so PP prices might gain further ground in October.
Early October expectations called for a firming trend in the PP market, but spot propylene prices on an FD NWE basis have registered a notable decrease of over €50/ton week over week due to a number of PP shutdowns in the region. However, spot naphtha prices are still standing above early September levels despite fluctuating crude prices.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Early July expectations emerge softer in Europe’s PP market
- Import PE prices fall to lowest in more than a decade across Asia
- Tightness pushes Asian PVC markets to 3-month high
- China’s PE market continues bearish run on sluggish demand
- PP and PE markets turn softer in Egypt, Mid-East
- European PET extends bearish trend into 3rd consecutive month
- European PS, ABS markets down after 4 months
- Thai PP, PE markets subdued by slowing economy, competitive imports
- Vietnam’s PE market extends losses into June on frail demand
- Asian spot naphtha prices pull back from multi-month highs