European propylene contract prices settle at €1,160/tonne free delivered northwest Europe in June, €10/tonne higher than May; PP producers, buyers project increase in June prices due to tight PP market, citing €15/tonne increases in May
LONDON , June 17, 2014 (ICIS Chemical Business (CBNB Abstracts) ) – European polypropylene prices are considering Jun 2014 pricing after propylene contract prices settled at EUR 1160/tonne free delivered (FD) northwest Europe (NWE) in Jun 2014, EUR 10/tonne higher than in May 2014. Meanwhile, homopolymer injection PP prices ranged from EUR 1280/tonne to EUR 1300/tonne for much of May 2014. Both PP producers and buyers project a large increase in Jun 2014 prices due to the tight PP market citing some EUR 15/tonne increases during May 2014. Despite notices of tight supply from sellers, buyers have not experienced shortages in supply. Real shortages are observed primarily in Italy's biaxially oriented polypropylene (BOPP) sector due to LyondellBasell's problems in propylene supply from Versalis' cracker site in Brindisi in mid-Apr 2014. Normal operations at this site have already resumed. Meanwhile, Total Petrochemicals' plan to shut its 900,000 tonnes/y PP manufacturing site in Belgium will affect availability across Europe. Additionally, PP imports in the region have been reduced after increasing the duties imposed on GCC imports from 3% to 6.5% starting 1 Jan 2014. Meanwhile, some players encourage buyers to shift from PP to high density polyethylene (HDPE) injection due to more favourable prices at around EUR 1250/tonne FD NWE in May 2014.