LONDON (ICIS)--Several major polypropylene (PP) producers in Europe have made it clear to their buyers they will transfer the €40/tonne drop of the June propylene contract to the PP market, sources said on Friday.
One said it would be trying to hold on to some of the €40/tonne, as product was by no means widely available, on planned shutdowns and some propylene supply constraints.
Another said it was ready to drop PP prices by €40/tonne, even though it was tight on some grades.
“We will do minus 40 [€/tonne], but…we have no opportunity for spot sales,” it said.
Some buyers said they intended to push for a reduction greater than €40/tonne but for the moment - at low-end business at any rate - this was not available.
“I’ve been pushing for more,” said one buyer, “but I’ve had no acceptance of that yet.”
Spot prices have also come under downward pressure, with homopolymer from South Korea cited as the lowest price in the market, at around €1,100/tonne FD (free delivered) NWE (northwest Europe), while low-end European prices were above this.
PP is used in packaging the manufacture of household goods, and also in the automotive industry.