Europe PP spot prices stable but in a wide range

LONDON (ICIS)–Polypropylene (PP) spot prices were stable in Europe this week, but the price range remained very wide, sources agreed on Friday.

Much depended on who was offering material for sale.

European homopolymer spot commodity grades were generally above €1,000/tonne FD (free delivered) NWE (northwest Europe), and some traders were also not far behind this level.

However, product from one particular imported source was being sold at €940/tonne DDP (delivered, duty paid), according to some sources. This is not seen as the reference for the market, but some sales were said to have been done at this level.

Most traders could not compete at this price, and some imports were being offered at $1,060/tonne CFR (cost & freight) Rotterdam, a level which would mean DDP prices in the mid €1,000s/tonne.

Spot activity has been thin on the ground with sources waiting for the October propylene contract to settle, and an outcome of plus €35/tonne on Friday had yet to lead to any increased activity.

Monthly prices rose largely in line with the propylene contract in September, but the spread between propylene and PP prices has been shrinking in recent months.

PP is used in packaging, the manufacture of household goods and also in the automotive sector.