SABIC targets €75/tonne hikes for Europe July PP

21 June 2007 17:06  [Source: ICIS news]

LONDON (ICIS news)--SABIC has announced hikes of €75/tonne ($100/tonne) - a rise of around 6% - for European July polypropylene (PP), the company said in a statement.

 

“Recently reported outages and closures of PP plants have increased the pressure customers put on us to deliver more product” said Eric Hogenboom, Business Unit Director SABIC Europe PP M&E on Wednesday.

 

“This goes for all the major industry sectors in which we are present. Scarce availability of transport capacity adds to this pressure,” he said.

 

Buyers accepted that product had tightened and that quarter three propylene monomer was likely to increase, but they did not expect to be paying such increases for July.

 

“They increased June PP prices because of expectations of higher propylene next quarter,” said one major European buyer, “they can’t keep using the same argument and expect us to accept it each time.”

 

PP homopolymer injection prices were trading €20-30/tonne higher for June, compared to July, at €1,200-1,230/tonne FD (free delivered) NWE (northwest Europe), according to global chemical market intelligence service ICIS pricing.

 

Most PP producers were awaiting the settlement of quarter three monomer before announcing plans for July.

 

(€1 = $0.75)

By: Linda Naylor
+44 20 8652 3214

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