03 September 2010 11:07 [Source: ICIS news]
LONDON (ICIS)--Polypropylene (PP) buyers in ?xml:namespace>
“They are making absolutely fantastic margins,” said one frustrated buyer, complaining about the months of price increases that producers have imposed on the market this year.
Buyers, however, are keen to reject such advances.
“There will be no increases,” said another buyer. “They might be able to hold on to the €10/tonne that they have saved in the monomer, but they won’t get prices up.”
An undertone of frustration tinged with anger ran throughout the market.
“I can get what I need from importers and resellers this month. I am simply not going to buy from the Europeans in September if they keep harping on about increases,” said a third buyer.
The PP market has been left with limited availability following some production issues and a programme of strict inventory control.
Buyers have also kept low inventories in anticipation of an expected influx of imported volumes from new plants in the Middle East and
But this material has proved very slow to appear, and there was still limited imported availability in the European PP market.
Homopolymer injection prices were now trading at €1,190-1,200/tonne FD (free delivered) NWE (northwest
“We expect a firm, steady September,” said a producer, “and we don’t exclude price increases. Product is not long and demand is good.”
PP producers in
($1 = €0.78)
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