European PP players voice expectations for propylene contracts
In France, a distributor sold out his West European PP allocation with increases of €100/ton for March. The distributor commented that demand was good amidst short supply and added that he expects to see further gains in April. An agent of another West European producer issued further hikes of €25/ton on top of his initial March increases of €125/ton. The trader said that he is sold out after his supplier closed their order books on March 11-12. According to the trader, supply will remain tight in April and PP prices are likely to gain further ground.
A distributor in Germany reported, “We are sold out now as demand was good this month. For April, we think that propylene contracts might settle up €30-50/ton considering short supply.” Another German distributor reported applying additional hikes of €50/ton after raising their PP prices by €130/ton in the first half of the month. The seller said that supply is short for PP and added that he projects increases of up to €40/ton for the upcoming propylene contracts.
A different distributor said that his total March hikes reached €170/ton after issuing additional increases of €30-40/ton compared to the beginning of the month. “For April, we think that propylene contracts might settle up €40-60/ton while producers are likely to aim for increases larger than the projected monomer hike considering tight supply,” the distributor commented.
In Belgium, a distributor concluded some March PP deals €130-160/ton above last month, commenting, “Demand was quite good this month while supply was short. However, we think that propylene contracts are likely to post smaller increases compared to this month as the energy complex is yet to recover its recent losses. Therefore, supply is likely to be the main driver for higher PP prices next month.”
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