London — European polypropylene contract prices for August are expected at a rollover on weak demand and despite a small rise in feedstocks, market sources said this week.
S&P Global Platts last assessed gross contract prices for PP homo at Eur1,430/mt FD NWE, with PP copol at Eur1,480/mt FD NWE, stable on the month. Industry sources said polypropylene producers could ask for a small increase in August contract prices following strength in upstream markets.Rollover expected European polypropylene August contract prices
The European propylene contract price for August rose Eur8 on the month to Eur1,040/mt FD NWE, while spot market prices remain at a premium to the industry-settled contract price on tight supply.Rollover expected European polypropylene August contract prices
Platts assessed the European spot price of polymer grade propylene for delivery 3-30 days forward at Eur1,083/mt Tuesday.Rollover expected European polypropylene August contract prices
Despite that, price stability was anticipated in the market as demand is expected to be weak in August due to the holiday season in Europe.
One source said inventory levels were low but there was a lack of buying interest in the market.Rollover expected European polypropylene August contract prices
“The increase in the monomer is not good news, it adds pressure on margins,” a second source said.Rollover expected European polypropylene August contract prices
The PP-propylene spot price spread was last assessed at Eur177/mt Tuesday, up Eur3.5 on the month, although remaining well below the Eur260/mt average in May, Platts data showed.Rollover expected European polypropylene August contract prices
“The propylene market is tight, but you don’t see the same upward pressure in polypropylene prices,” the source said.
–Lara Berton, lara.berton@spglobal.com
–Edited by Jeremy Lovell, jeremy.lovell@spglobal.com
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