Europe PP margins rise on declining feedstock costs

Source: ICIS News

2017/04/24

HOUSTON (ICIS)--Europe polypropylene (PP) margins rose during the week ended 21 April on lower naphtha and propane feedstock costs, according to the ICIS margin report on Monday.

Europe integrated domestic polypropylene (PP) margins based on naphtha ended three straight weeks of decline by rising 9.4% as feedstock costs fell by 8.0%.

Additionally, cracker coproducts fell 1.8%.

Integrated domestic PP margins based on propane dehydrogenation (PDH) also ended three consecutive down weeks with an increase of 6.7% as feedstock costs fell by 7.4%.

Europe polypropylene prices remained unchanged at €1380/tonne.

Meanwhile, the euro edged up 0.8% against the US dollar. With naphtha feedstock priced in US dollars, weakness in the euro usually has a negative effect on margins, while a strengthening euro has a positive effect.