05 August 2009 16:49 [Source: ICIS news]
LONDON (ICIS news)--Polypropylene (PP) arbitrage opportunities from Europe to ?xml:namespace>
“Our stock level is completely unliveable,” said a major PP producer. “Arbitrage opportunities have vanished.”
European net prices for homopolymer injection were now close to €900/tonne ($1,304/tonne) FD (free delivered) NWE (northwest
Demand in Europe had improved in the past weeks, and production cutbacks, coupled with earlier strong export volumes from Europe, have led to very limited supply of all PP grades in
“People I haven’t heard from in years have been asking me for PP but I just don’t have any,” said a trader.
Buyers generally accepted that they would have to pay increases in August, but some sellers were looking beyond, into September, for more increases.
“Inventories are low along the chain. I need lower demand in August to help me get back to a workable stock level,” said another producer.
The long-awaited new capacities from the Middle East and Asia had still not produced any significant quantities of material for Europe, or indeed
PP and polyethylene (PE) producers in Europe include LyondellBasell, Borealis, SABIC, Total Petrochemicals, Dow Chemical, Repsol, INEOS Olefins and Polymers, Polychim and Domo.
($1 = €0.69)
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