30 July 2010 10:56 [Source: ICIS news]
“The decreases being offered are not that big but at least we are no longer being faced with increases. It’s a real relief,” said a beleaguered buyer.
Prices had risen by over 30% in 2010 due to restricted availability of propylene and subsequently PP.
Some producers made it clear that they would be bringing their PP prices down in line, at least to a certain extent, with the new August propylene monomer contract, which settled at €940/tonne, down by €38/tonne ($50/tonne) from the July level.
Other producers felt that the tight supply/demand balance, which was still a feature of the European PP market, would support a rollover.
A new declaration of force majeure was made this week as the 300,000 tonne/year PP joint venture between Total Petrochemicals and INEOS at Lavera in
Total already had force majeure restrictions in place on PP deliveries in Europe, applied in May, after unplanned technical issues at an undisclosed site, widely thought to be Feluy in
Imported PP was offered from some sources into Europe but there was no flood of product from the
“I have been offered copolymers at €1,270-1,280/tonne [delivered] from importers,” said another buyer, “but if the material isn’t in
Many observers now only expected significant quantities of imported product to arrive in
Another buyer said: “As long as European producers keep on reducing production, there won’t be a significant price drop.”
Many of the new capacities starting up in the Middle East had joint venture partnerships in Europe, and these players were clearly loath to flood the market with product which would harm their domestic businesses in
Traders were reported to be anticipating a rush for pre-Christmas production in
European PP price discussions for August were expected to take place in the coming days.
($1 = €0.76)
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