European PP sellers track divergent pricing policies amid weak fundamentals
A West European producer revealed January PP contract offers up €60-70/ton in order to recover their margins. A producer source commented, “Demand is not expected to be strong for this month while supply is reportedly short due to some planned shutdowns in Europe. We also heard that PP block copolymer supply is tighter than homo-PP supplies.”
A distributor from Italy reported that their South European supplier seeks to achieve at least €60/ton hikes on their spot deals. However, the seller thinks that it will be difficult to sell material at these levels as they look too high. The producer’s levels stand at €1160/ton for homo-PP and at €1210/ton for PPBC FD, 60 days.
Another seller whose new offers indicate €45/ton hikes confirmed that demand is not likely to pick up as many converters are covered for January.
A buyer from Switzerland claimed that pass through of larger hikes than propylene will not be possible as demand is not expected to be strong in January due to the previous pre-buying activities.
A different distributor from the Netherlands is mulling over applying further hikes if demand improves while also noting that his allocations for prime material are very low.
In Northwest Europe, price ranges stand at €1080-1180/ton for homo-PP and at €1130-1230/ton for PPBC FD NWE, while in Italy, prices are currently quoted at €1060-1160/ton for homo-PP and at €1130-1210/ton for PPBC FD, 60 days.
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