July PP dealt with discounts in Europe, Aug expectations voiced
Not much activity is foreseen to take place during the summer holidays and therefore widespread expectations for August hint at a mostly stable to softer trend. A packager in Germany said, “We expect rollovers in August as PP supplies are not as ample as PE.”
“We conceded to some discounts compared to the early July levels as buyers resisted higher PP offers and there were more aggressive offers in the market. Overall sentiment is weak and expectations call for a stable to softer trend in August,” a reseller commented.
A distributor of a West European producer, meanwhile, opined, “We think that PP prices have room for further decreases of up to €20/ton in August as demand is not expected to be sturdy in the near term.”
On the upstream front, expectations call for rollovers to slight drops in the next propylene contacts, many players concurred. A distributor in Belgium predicted, “Although July contract level stands below the current spot propylene prices, we expect rollovers or slight decreases for August.”
Weekly average data from ChemOrbis Price Wizard reveal that spot propylene prices on FD NWE basis have retreated by around €30-40/ton since they hit a four-year high in mid-June.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- China’s PP market set to receive massive capacity additions in 2019
- PS recovery continues in Asia amid slowly rising styrene prices
- Restriction on shopping bags exerts pressure on PE demand in Turkey
- LLDPE moves below €1000/ton in Europe, eyes on awaited US PE cargoes
- Import PVC soars to 4-month high in China, India
- European PET erases hefty gains of 2018, notching 4th month of weakness
- SE Asia PP market likely to remain under pressure amid upcoming capacities
- Saudi major issues drops for January in global PE markets
- PS producers’ January offers defy lower styrene in Europe
- Asian PVC market holds firm prior to Feb announcement