Skip to content


Asia Pacific

  • Africa

  • Egypt
  • Africa
  • (Algeria, Tunisia, Libya, Morocco, Nigeria, Kenya, Tanzania, South Africa)

Filter Options
Text :
Search Criteria :
Territory/Country :
Product Group/Product :
News Type :
My Favorites:

PP hikes beyond propylene unlikely to pass in Europe

by ChemOrbis Editorial Team -
  • 13/01/2017 (14:48)
Some sellers in Europe initially attempted to apply larger increases of up to €70/ton on January PP offers compared to a €45/ton hike in the monthly propylene contracts. However, these sellers are now mulling over revising their prices as they are not considered workable given the current status of demand. In Italy, a distributor reported seeking official hikes of €70/ton for West European material in line with his supplier’s guidelines. He stated, “Our offers stand on the high end of the ranges and we have regular quotas. However, we might consider revising our list prices down.”

Similarly, a compounder reported receiving offers from his regular supplier with increases of up to €70/ton, commenting, “One of our West European suppliers said that they are open to negotiate down their prices. We have done some pre-buying in December, so we have no plan to restock until early February as we have sufficient material.”

Players reminded that not many official offers surfaced due to the gradual return of market players from holidays. Therefore, they believe that current levels, those on the high ends in particular, might be subject to downward revisions in the following weeks.

On the other hand, there are speculations about a pick-up in demand considering the upcoming cracker maintenance season between March and May, tightening monomer supplies. Buyers are expected to start replenishing in the medium term not only because of the expected tightness in supply levels but also because they will need to restock after running out of material.

In the Netherlands, a seller confirmed hearing bullish talks for February and March due to the strong naphtha costs and cracker shutdowns across Europe.

Therefore, these bullish expectations have strengthened the idea that the entire monomer costs will be easily passed onto January PP deals, although the success of applying larger hikes than the propylene increase in January does not seem possible for the time being.

Spot homo PP prices are reported at €1060-1160/ton in Italy and at €1070-1190/ton in Northwest Europe, both on FD, 60 days deferred payment basis.
Free Trial
Member Login