Naphtha costs to continue as primary influence on Europe PP prices

LONDON (ICIS)–Polypropylene (PP) prices in Europe will be mainly influenced by naphtha price movements with larger than recently expected increases in the February to March 2017 period, the latest ICIS PP Europe price forecast report suggests this week.

Only slight polymer price increases are seen for May 2016 with some upward pressure on prices in June.

Put into the context of possible weak naphtha and propylene costs later in the year, PP prices could move permanently lower unless there are structural, long-lasting changes in global crude oil markets, the forecast suggests.

“The longer-term global [PP] supply and demand picture looks balanced and any excess in supply is not anticipated at least for the next year or two,” it adds.

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