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May PP deals concluded, June outlook in discussion in West Europe

by ChemOrbis Editorial Team -
  • 17/05/2016 (17:03)
May PP deals are being concluded on a stable to slightly firmer note across West Europe after many sellers stepped back from their initial price hikes, which were beyond the €15/ton rise in the propylene contracts.

A distributor in the Netherlands sold West European PP up €15/ton from last month after toning down his initial hike requests due to weaker than expected demand. The seller’s done deal levels are at €1140-1150/ton for homo-PP and at €1190-1200/ton for PP block copolymer injection FD, 60 days.

A converter in Switzerland reported settling his May PP contracts with rollovers to increases of €20/ton from April after his West European suppliers approached the market with hike requests of €30-40/ton. The buyer is projecting rollovers to small decreases for June PP prices.

A container manufacturer in Belgium bought Russian homo-PP injection with rollovers from April at €1100/ton on an FD basis and said that he received West European offers at higher levels of €1200/ton for the same product in the spot market. According to him, the outlook is steady for June.

A compounder in Germany purchased small volumes of West European PP with increases of €10-15/ton for May at €1110-1120/ton for homo-PP and at €1140-1160/ton for PP block copolymer injection FD, 60 days. The buyer reported that his end product demand slowed down recently and added that he expects to see some decreases in the next few months.

Expectations continue to be voiced for June. Some players are anticipating a mostly stable trend while others think that there is room for slight decreases depending on the demand situation. Upstream, spot propylene prices are suggesting an increase of over €20/ton compared to the beginning of May. Spot naphtha prices have climbed by around $50/ton on a CIF NWE basis over the past week, pushed up by firmer crude oil prices. Therefore, upstream movements might limit expectations of a possible softening and lend support to the PP market.
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