PP sellers’ hike attempts for May under discussion in Europe
In addition to higher monomer settlements, firming spot propylene prices amidst the strong energy complex have also prompted sellers to approach the market with increases for May. ChemOrbis Price Wizard reveals that spot propylene prices on FD NWE basis have recently hit more than one-year high, on average.
A regional player argued, “If it were not for the higher production costs, PP prices would be under the pressure of calm demand and sufficient supplies.”
Although official announcements have not been widely made, some PP sellers have started to voice their May sell ideas with increases of €25/ton in line with the propylene hike.
A regional distributor expects to receive €25/ton higher PP offers from his West European supplier, pointing to the fact that PP market is stronger when compared to PE as well as the possibility of seeing some improvement in demand.
In Belgium, a distributor also voiced higher sell ideas for May matching the propylene hike. He claimed that some buyers have already started to do some pre-buying at the end of April as they expected some increases.
Whether demand will improve in response to the firmer PP offers or not is a matter of discussion as demand was previously expected to remain subdued in May due to some festivities across Europe. Limited working days might put a cap on sellers’ hike attempts going forward.
A converter from Italy reported, “Demand is sluggish while supplies are ample. We heard that producers are sitting on high stocks. Therefore, we expect stable PP prices despite the €25/ton hike in May propylene contracts.”
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- June expectations surface in Mid-Eastern, African polyolefin markets
- China’s local PVC market retreats from 8-month high
- Initial June PE offers to SEA signal firming despite buyers’ resistance
- Firming in ethylene lags behind propylene in Europe
- PET rally stalls in China after prices hit four-and-half-year high
- Asian PS retains firming path on supportive upstream
- June PE outlook under discussion in Europe
- Taiwanese major lowers June PVC offers to Asia despite firm China
- Local PP markets cautiously firmer in Vietnam, Indonesia
- Global ethylene prices continue to defy energy rally