24 April 2013 17:10 [Source: ICIS news]
LONDON (ICIS)--Polypropylene (PP) spot prices are down as the market expects a lower propylene contract settlement for May but activity is muted, sources said on Wednesday.
“Some sellers are now offering prices that many buyers expect for May,” said one distributor.
Homopolymer PP prices are now trading at €1,150-1,200/tonne ($1,494-1,558/tonne) FD (free delivered) NWE (northwest Europe), depending on the selling source, falling from €1,230-1,260/tonne at the end of March.
Expectations of a lower monomer contract settlement for May are based on softer upstream prices.
On Wednesday, naphtha was trading at $795-798/tonne CIF (cost insurance freight) NWE, while in mid-February they were above $1,000/tonne CIF NWE and at $844-845/tonne CIF NWE at the beginning of April.
Poor demand is also adding to the weak sentiment in Europe at present.
PP is used in the manufacture of packaging and household goods and also in the automotive sector.
($1 = €0.77)
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