28 February 2011 15:55 [Source: ICIS news]
LONDON (ICIS)--INEOS intends to increase its polypropylene (PP) prices in Europe by €100/tonne ($137/tonne) in March following the initial settlement of the monthly propylene monomer contract at €1,185/tonne, which was up by €80/tonne from February, a company source said on Monday.
“Demand is still strong…converter order books are at good levels,” the INEOS source said.
The propylene contract had been slow to settle due to volatility in the upstream crude oil and naphtha markets. Brent crude prices had reached a two-year high of $119/bbl in February but were trading at $111.90/bbl at 15:05 GMT on Monday.
PP prices had already increased by €150/tonne since the beginning of December. Homopolymer injection PP prices at the end of February were at record highs of €1,350-1,400/tonne FD (free delivered) NWE (northwest Europe) on a net basis.
Several PP players had said that any further attempts to increase PP prices would affect the level of demand, and some smaller PP buyers said that they would simply stop producing if they were unable to recover the recent increases in the PP market.
PP is used in the manufacture of household goods, packaging and automotive applications.
($1 = €0.73)
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