Europe PP players conflicted on Feb settlement

07 February 2008 14:50  [Source: ICIS news]

LONDON (ICIS news)--Polypropylene (PP) is under discussion for February, with sellers still aiming to cover the first-quarter propylene hike and buyers expecting to roll prices over, market sources said on Thursday.

 

First-quarter propylene rose by €57/tonne ($84/tonne) and PP producers, supported by a flurry of activity after the new year, managed to hike January PP prices by €25-30/tonne, bringing homopolymer injection prices up to €1,270/tonne FD (free delivered) NWE (northwest Europe).

  

Their intention to cover the rest of the propylene increase was hampered by subsequent poor demand, however, and a weakening upstream situation. Spot propylene prices were down at €870/tonne FD NWE, below the quarterly contract level of €945/tonne FD NWE.

 

“Rollover in February is not an option for us,” said a major PP producer.

 

Buyers were not in a hurry to buy, however, and they saw no shortage of material, or the probability of imminently higher prices, to spur them to buy.

 

“I will use the last bag in my warehouse before I buy again,” said one buyer.

 

Others were prepared to wait before buying for the month. Stocks were widely thought to be comfortable with converters and no product shortages were in evidence in Europe.

 

PP producers in Europe include INEOS Polyolefins, Total Petrochemicals, Basell, Borealis, SABIC and Repsol.          

 

($1 = €0.68)

 

For more on polypropylene visit ICIS chemical intelligence

 

 

 

By: Linda Naylor
+44 20 8652 3214

< previous article(ICIS Chemical Business podcast November 2, 2009)

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