European sellers reluctant to reflect full monomer drops onto Dec PP, PE

Players in Europe’s polyolefin markets received modest decreases from regional sources when the large decreases of €100-110/ton in December monomer contracts are considered. “Sellers intend to keep the size of downstream PP and PE drops in check to improve their margins,” a player noted.

In Italy, PP and HDPE film prices hit around a 6-month low, according to ChemOrbis Price Index, while LDPE and LLDPE film prices sank to around or more than a 3-year low in early December.

Accordingly, initial PP prices suggested €30-60/ton declines from November in the spot markets of Italy and Northwest Europe. Some players pointed to supply disruptions stemming from the previously low water levels on the River Rhine as another factor behind sellers’ determination to offer smaller drops than propylene decrease.

Similarly, fresh PE offers in the region’s local markets indicated monthly drops of €40-50/ton. Converters are set to push for additional discounts on deals citing a lack of visible supply concerns and the year-end lull prior to Christmas holidays.

In Italy, spot PP prices were at €1180-1280/ton for homo-PP and at €1230-1320/ton for PPBC inj. FD, 60 days. PE prices stood at €1120-1200/ton for HDPE film and b/m, at €1040-1120/ton for LDPE and at €1020-1090/ton for LLDPE with the same terms.