20 December 2007 10:58 [Source: ICIS news]
LONDON (ICIS news)--INEOS Polyolefins will attempt to increase Europe January polypropylene (PP) prices by the full first-quarter €57/tonne ($81/tonne) hike in propylene, a company source reported on Thursday.
“If there is an increase in January, it will be modest,” said one large buyer.
“Demand won’t support it. We are already feeling the impact of a slower economy.”
Another buyer was still able to buy spot volumes at stable price levels.
“I am buying from a European major producer at December prices for January delivery,” he said, adding that he would be buying extra material to avoid buying early next year.
PP producers were eager to recover increased costs from the first-quarter propylene settlement at €945/tonne FD (free delivered) NWE (northwest ?xml:namespace>
Several buyers reported that they had so far had no word of January intentions, however.
Another major PP producer reported that it would not be satisfied with recovering only the propylene increase, and intended to cover losses incurred during the fourth quarter of 2007.
“We will probably be looking for an increase of around €80/tonne for January PP,” he said on Thursday. “We will be announcing to the market shortly.”
Homopolymer injection was trading in the mid-€1,200s/tonne FD NWE on a gross basis, according to global chemical market intelligence service ICIS pricing.
($1 = €0.70)
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