23 August 2013 09:35 [Source: ICB]
Polypropylene (PP) prices in Europe are settling at an increase in line with monomer values at most accounts in August, sources said on 14 August.
The August propylene monomer contract settled up by €50/tonne ($67/tonne), at €1,090/tonne FD (free delivered) NWE (northwest Europe), and sellers have been pushing hard to recover this hike, and sometimes more in certain cases.
"We are working on a pass-through of the feedstock," said one large buyer, indicating that the increase from July to August would be €50/tonne.
"I have settled almost everything at monomer [up] or monomer plus €5/tonne," said another, who added that it would not settle at monomer plus €20/tonne, or a €70/tonne increase in total, that one producer was targeting.
Suppliers said demand was good, but some players put this down to a level of stocking ahead of a possible increase in September, as naphtha prices continued to increase, exerting upward pressure on the cracker.
Availability of PP has been tightened by production cutbacks, better-than-expected demand in recent weeks and limited imports.
Some propylene issues have also led to reduction in output at some sites.
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