Europe PP stabilising as exports exploit Asia hikes

16 May 2008 16:29  [Source: ICIS news]

LONDON (ICIS news)--Increases of up to $50/tonne (€33/tonne) in the Asian polypropylene (PP) market, coupled with the stronger dollar-euro rate, have led to a surge of export activity which was expected to stabilise the European market, sources said on Friday.

“Our exports have increased 30-40% over previous months,” said one major European PP producer.

Gross monthly prices for homopolymer injection PP were talked widely in the mid-€1,100s/tonne FD, while some spot levels were down below €1,100/tonne FD NWE.

Asian PP prices rose up to $1,650/tonne CFR this week.

Three cases of force majeure on the European PP market also tightened the situation. SABIC declared force majeure on supplies from its Geleen plant in the Netherlands this week, adding to declarations from INEOS Polyolefins at Grangemouth in the UK and Geel in Belgium.

PP prices have been decreasing this year in Europe as the weak dollar hit Europe doubly, attracting cheap imported PP and restricting export possibilities.

PP producers in Europe include LyondellBasell, Borealis, Total Petrochemicals, Dow, Repsol and INEOS Polyolefins.

($1 = €0.65)

For more on PP visit ICIS chemical intelligence

By: Linda Naylor
+44 20 8652 3214

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