EPCA ’16: Europe PE PP players uncertain as monomers settle
Linda Naylor
02-Oct-2016
BUDAPEST (ICIS)–Polyethylene (PE) and polypropylene
(PP) players in Europe are uncertain about the pricing trend
for their products in October, as monomer contracts settle
ahead of the 50th annual European Petrochemical Association
(EPCA) meeting.
The October ethylene contract settled at €940/tonne FD (free delivered)
NWE (northwest Europe), up by €15/tonne from its September
level, while the propylene contract finally settled at €725/tonne, an increase of
€35/tonne.
Monomer contracts were done too late for many polymer
suppliers to have the time to inform customers of pricing
policies on Friday 30 September, but some major PE buyers had
been given ideas.
“A couple of suppliers have told me their response will
probably be to follow the monomer,” said one such
buyer.
Others were still caught up in discussions for September
retroactive pricing.
“We’re still discussing September,” said another. “I haven’t
spoken to suppliers [about October] yet but I don’t know why
we should see an increase. The market is balanced.”
Spot PE pricing has been very quiet, and prices had moved
down towards the end of the month.
PP sellers had not yet informed buyers of pricing plans for
October, in spite of the lateness of the day, as the
propylene contract was only finalised on Friday
morning.
Some PP grades had been tight, along with propylene supply,
and while buyers did not expect to be paying a significant
increase – some expecting not even to cover the propylene
hike – they did expect suppliers to target at least the
propylene hike.
“PP is not like PE,” said another buyer. “There will be an
impact from the contract.”
PE and PP pricing discussions were expected to begin in
earnest next week.
PE and PP are used in packaging and the manufacture of
household goods. PE is also used in the agricultural
industry, and PP in the automotive sector.
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