Will Europe continue to attract PP, PE imports in Feb?
The fact that Europe stood well above the other major regions in terms of prices also helped global suppliers divert their cargoes to the region in January. Now players are wondering whether this will be the case in February particularly after the settlements of February ethylene and propylene contracts with €60-70/ton decreases.
“Buying interest was vivid in January because converters returned from holidays with low stocks. However, it has now cooled off as buyers already met their requirements. Now that the monomer contracts assured the downturn in PP and PE markets for next month, demand is set to slow down further as buyers will now delay their purchases again upon the expectation of seeing much lower levels. We cannot be sure about the degree of interest for import cargoes next month,” said a trader.
A second trader said, “The new settlements for monomers will be reflected on downstream PP and PE prices in February for sure. Whether imports will continue to see interest next month highly depends on their ability to offer a competitive edge.”
A buyer in Germany pointed to the upcoming Chinese New Year holiday, noting “In the absence of China, major suppliers including in the Middle East and Iran should focus more on other export destinations. Therefore, more competitive imports are still likely in February across Europe.”
“It is not only Iranian and Middle Eastern cargoes, but also US cargoes are now being offered at very competitive prices in Germany,” said a distributor.
ChemOrbis Price Indices for Italy and Turkey also suggest a higher than usual premium between the two countries for both PP and PE. You can compare all prices in different regions by creating your own graphs in ChemOrbis Price Wizard.
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