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, amar.carmody@spglobal.com

–Edited by Jonathan Dart, jonathan.dart@spglobal.com

http://www.platts.com/latest-news/petrochemicals/london/european-polypropylene-spot-price-rises-for-first-26519750