PP prices move higher in Europe
The latest hike requests were attributed to tighter supply for PP amidst good demand while a few sellers also drew attention to firmer spot naphtha prices. Some PP plants have returned from shutdowns in the first half of October, but they are yet to impact supply levels for now. In addition, LyondellBasell declared force majeure on PP from Aubette, France earlier this week. Market sources reported that the company’s 350,000 tons/year plant is expected to resume operations today after being shut due to technical issues on October 6.
In Italy, a distributor raised his West European PP prices by €20/ton compared to last week in line with his supplier’s guidelines due to tight supply, bringing his new offers to €1160/ton for homo-PP to €1210/ton for PP block copolymer injection on an FD, 60 days deferred payment basis.
A converter received the latest PP offers with increases of €30/ton compared to his early October purchases from different West European suppliers at €1030-1040/ton for homo-PP and at €1080-1090/ton for PP block copolymer both on an FD basis. The buyer said that he hasn’t received all of the volumes he ordered this month and said that one of his suppliers will have homo-PP availability later this week. A compounder confirmed the latest increases of €30/ton compared to initial October PP prices. However, the buyer said that many sellers have already closed their order books and said that he only ordered material on a contractual basis from his regular West European supplier this month. The buyer was offered West European homo-PP at €1080-1100/ton and PP block copolymer at €1130-1150/ton in the spot market.
In France, a converter received the latest October PP offers up €30/ton compared to the beginning of the month at €1050/ton for homo-PP and at €1100/ton for PP block copolymer FD, 60 days. The buyer commented, “We bought some homo-PP at €1000-1010/ton at the beginning of the month following the propylene settlements. However, supply has tightened since then so sellers lifted their prices slightly. Our end product demand is good.
A distributor in Germany lifted his West European PP prices by €50/ton compared to the beginning of the month to €1150-1180/ton for homo-PP and to €1180-1230/ton for PP block copolymer injection both on an FD basis. The seller cited good demand as the main reason behind his higher prices.
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