Propylene Tight in Europe
European polypropylene spot price rises for first time since May on feedstock
London (Platts)–11 Aug 2016 703 am EDT/1103 GMT
European homo injection polypropylene spot prices have risen for the first time since early May on bullish feedstock propylene.
Prices increased Eur10 ($11.15) on the week Wednesday to be assessed at Eur960/mt FD NWE rising from their lowest since February.
“Traders are holding off [PP sales] as they may be able to sell higher in September,” a converter source said.
The expectation of higher September prices follows upward movement in propylene prices.
A tight European propylene market, intensified by reduced output from refineries has left traders indicating prices near 10% above the August contract price of Eur670/mt FD NWE this week.
“The [propylene] market early August is tight, people are in urgent need of material but the heat affecting refineries is bringing down run rates,” a trade source said.
A recovery in propylene supply is not expected by September, sources said, as European crackers are undergoing maintenance.
A planned maintenance shutdown of one of BPRP’s two crackers at Gelsenkirchen, Germany, will begin mid-August. In addition LyondellBasell is set to carry out scheduled maintenance at one of its crackers at Wesseling, Germany, in September.
–Amar Carmody, firstname.lastname@example.org
–Edited by Jonathan Dart, email@example.com