Spot PPBC prices lose premium over PPH injection in Europe
by Manolya Tufan - mtufan@chemorbis.com
Recently, the premium of PPBC market over PPH injection has melted in Europe as PPH inj. supplies were reportedly tighter. Under balanced market conditions, PPBC should be priced above PPH injection prices.
According to the weekly average data, spot PPH inj. prices in Italy started to trade above PPBC inj. prices for the first time since ChemOrbis began compiling data in 2008. PPH inj. carries a premium of €30/ton over PPBC prices, as can be seen in the below graph. In Northwest Europe, the premium of PPBC over PPH inj. shrank to €25/ton, marking the narrowest gap since around 2013.
Overall PP supplies dried up due to a combination of unplanned outages in the US and Europe, an ongoing lack of deep-sea cargos, strong exports to the higher netback regions and upcoming maintenance shutdowns across the board.
According to the weekly average data, spot PPH inj. prices in Italy started to trade above PPBC inj. prices for the first time since ChemOrbis began compiling data in 2008. PPH inj. carries a premium of €30/ton over PPBC prices, as can be seen in the below graph. In Northwest Europe, the premium of PPBC over PPH inj. shrank to €25/ton, marking the narrowest gap since around 2013.
Overall PP supplies dried up due to a combination of unplanned outages in the US and Europe, an ongoing lack of deep-sea cargos, strong exports to the higher netback regions and upcoming maintenance shutdowns across the board.
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