Europe March polypropylene prices remain stable

LONDON (ICIS)–The majority of March European polypropylene (PP) prices have so far held steady from February levels, participants said on Friday.

This follows the settlement of the March propylene contract price at a rollover from the previous month, and many sources viewing the market as balanced, with no real justification for price hikes or reductions.

“We achieved a rollover,” one producer said. “I think the situation for PP is in equilibrium.”

A second producer said: “There was pressure in the early days of the month to give away €10-20/tonne, but the pressure disappeared this week.

“The market’s now stable. Demand is pretty good for the time being. Some producers have noticed demand picking up. Prices rolled over.”

Five buyers also reported March rollovers.

One has resisted suppliers’ attempts to raise prices, believing that a rollover was fair.

“Suppliers will try it on, but we’ve given them a robust response,” this buyer said. “We’re not moving. A rollover is a fair position. Demand isn’t great.”

In contrast, one producer says it has achieved price hikes of €10-20/tonne.

A fifth buyer continues to push for a March price reduction, while a sixth said it has achieved a decrease of €10-20/tonne on the basis of plentiful availability.