Propylene contracts pave way for higher PP prices in Europe
Even though the gain in propylene is rather moderate, firm expectations persist since buyers are expected to return to the market once they resume operations following the holidays. In addition, Ineos declared force majeure on PP from its Lillo plant in Belgium due to a technical glitch following a scheduled turnaround, market sources reported towards the end of last week.
In Italy, a distributor concluded his August PP deals with rollovers from July. The seller expects hike attempts for PP to outpace the gain in September propylene settlements. A converter settled his August PP contracts with rollovers to slight discounts of €10/ton from last month. “Players are talking about tighter propylene availability and notable increases for September. Therefore, we bought slightly more volumes than our regular monthly requirement,” he commented.
A buyer in Switzerland closed his August PP contracts with rollovers to decreases of €10-15/ton. The buyer reported hearing about possible increases of €50/ton for September PP prices before the propylene contracts were settled.
Another buyer in France made some purchases from the spot market at stable levels for August, commenting, “We are yet to receive the new September offers, but one of our suppliers have already informed us that they will be applying some increases on their new PP prices.”
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