West European PP market under pressure from propylene
In Belgium, a distributor reported conceding to additional decreases of €20/ton compared to the beginning of the month in order to speed up his sales, bringing his total January discounts to €120/ton. The distributor commented, “Demand was good earlier in the month, but it slowed down later due to bearish expectations. We expect propylene contracts to settle down €50/ton for February while the market might change direction in the March-April period.”
Another distributor, who sold West European PP €100/ton below last month, said, “Buyers are keeping low stocks in anticipation of seeing further decreases in February, when demand might pick up. For propylene, we project decreases of €40-60/ton for the upcoming contracts as suppliers might seek to retain their margins. PP prices might stabilize in March after hitting the bottom next month.” A different distributor concluded some January deals €120/ton below last month after issuing further discounts in the second half of the month. According to the distributor, propylene contracts might settle with decreases of around €80/ton for February.
In France, a distributor concluded his January PP deals with decreases of €110/ton. The distributor anticipates decreases of €30-50/ton for the awaited propylene contracts while thinking that demand is likely to improve as prices might reach the bottom level. A converter, who received West European PP offers at the low ends of this week’s ranges, stated that he is still planning to wait despite the additional reductions from early January levels.
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