Three-digit hikes passing on April PP deals in Italy
Spot PP prices are at €1280-1400/ton for homo-PP and at €1320-1450/ton for PPBC, FD Italy, 60 days.
A West European producer announced hikes of €150-170/ton on their April PP contracts. A producer source commented, “It is early to understand whether the market will absorb such sharp hikes. However, we have declared force majeure on our PP output from Belgium and Austria and overall PP supply is short.” An agent of another West European producer raised his PP prices by €150/ton from last month. The seller commented that his allocation is tight as his supplier is having production issues.
A converter paid hikes of €200/ton for West and Central European PP in the spot market. The buyer complained about the current market situation, commenting that supply is short and that he is struggling to reflect higher costs onto his end product prices. Another converter bought West and South European PP block copolymer with €150/ton increases from last month, reporting that he has sufficient stocks for homo-PP. The buyer also received some April PP offers with sharper hikes of up to €180/ton.
A compounder, however, settled his April PP contracts with increases equal to the propylene contract hike of €55/ton with a different West European producer. Meanwhile, in the spot market, the same buyer bought South African homo-PP with a €150/ton hike from March.
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