Skip to content

Filter Options
Text :
Search Criteria :
Territory/Country :
Product Group/Product :
News Type :
My Favorites:

Will downfall lose speed in European PP market?

by ChemOrbis Editorial Team -
  • 26/11/2014 (09:17)
The European PP market retains its bearish note as players are commenting on the December outlook. In accordance with softer expectations for propylene, the PP market is projected to retain its downward note, but at a slower pace compared to November.

A West European producer settled their November gentlemen’s agreements for PP with decreases of €50-70/ton from last month in Italy. A producer source commented that demand has been normal this month while their supply is comfortable.

A distributor commented that he expects to see decreases of €30-40/ton on the awaited propylene contracts. Some converters reported hearing talks of slightly smaller decreases of €20/ton from November for propylene.

Another distributor in Germany also reported, “We revised our price cuts from €70/ton to €60/ton for late November due to our dwindling availability. For December, we project decreases of only €20/ton for the propylene contracts. In that case, our supplier may aim for rollovers on PP.”

Looking at the upstream markets, spot propylene prices were reported €20-25/ton lower on the week at €990-995/ton FD NWE as of the end of last week. Players attributed this loss to softer expectations for the upcoming December propylene contract prices based on lower naphtha costs which are suggesting a drop of over $40/ton from early November levels. However, a large fall is not expected in the contract price for propylene as a number of shutdowns at crackers across Europe caused reduced availability.
Free Trial