Europe Sept PP shows early gains of €100/tonne

04 September 2009 20:33  [Source: ICIS news]

LONDON (ICIS news)--Early settlers in the European polypropylene (PP) market confirmed increases of €100/tonne ($143/tonne) across all grades for September domestic prices, although further hikes were possible, sources said on Friday.

The increases were largely driven by hikes of €93/tonne for September in the upstream propylene market and tight propylene supply, which kept PP production at low rates.

“€100/tonne [in Europe] and £80/tonne [€92/tonne in the UK] is the minimum increase we can afford to pass through,” said a major northwest European producer. “The total target across the month is €125/tonne and we are trying to get prices closer to this.”

The source added, “We will become more successful as the month goes on and buyers find themselves in need of material. Customers are eager and material is very tight.”

This was echoed by several producers who were all hopeful that short supply of PP would enable them to achieve a total increment of €125/tonne by the end of the month.

A consumer conceded, “The minimum increase we will see in September [domestic prices] is €100/tonne. PP is extremely tight and this gives them [sellers] power for their arguments.”

As a result, raffia PP was trading at €1,070-1,090/tonne, while homopolymer injection was booked at €1,070-1,100/tonne. Biaxially oriented PP (BOPP) film prices settled at €1,115-1,130/tonne and copolymer PP was assessed at €1,110-1,130/tonne.

In the UK, both raffia PP and homopolymer PP prices up to £915-940/tonne, while copolymer PP was settled at £945-965/tonne, all on an FD basis.

All prices were assessed on an FD (free delivered) NWE (northwest Europe) basis according to global chemical market intelligence service ICIS pricing.

Spot prices also ticked up €10-20/tonne in line with sentiment, although limited availability kept trades muted. In Turkey, the Ramadan slowdown seemed to have little effect as homopolymer injection spot prices gained $50/tonne on the back of tight availability.

($1 = €0.70) (€1 = £0.87)

For more on propylene or polypropylene visit ICIS chemical intelligence
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ICIS has launched weekly pricing reports in Africa for polyethylene and polypropylene. For more information contact Nadine Spoeri

By: Stephanie Wilson
+44 20 8652 3214

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