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...
- Turkey’s stormy week: Hike attempts emerge after 4 months in PP, PE markets
- PVC markets fail to extend gains to Oct on economic woes, low demand in Asia
- Sentiment cautiously rebounds in Asian PP, PE markets
- Asian monomer markets react after crude oil surge
- September hikes meet resistance for ABS in Europe
- Turkey’s import PP market slumps to 3-year low on supply glut, low demand
- Import PVC demand dampened in Europe, Turkey; will it improve in H2?
- Chinese PET producers attempt for hikes first time since July
- Uptrend in spot styrene prices curtailed in Asia
- Spot LDPE, LLDPE prices hit a decade low in Italy