Spot PP prices in Italy in April have risen by at least €100/ton over March in line with the €100-120/ton hike requests of sellers, as per Chemorbis. Despite sellers’ claims about achieving done deals in the range of €1210-1300/ton for homo PP, buyers have not been so eager to conclude deals so far in April.
This week, further hike talks for May have surfaced in the spot market. A trade received a PP block copolymer offer for May at an extremely high price at €1360/ton, a strong sign that PP prices are set to rise further next month. Another trader who applied an additional €20/ton increase in his West European and Hungarian offers over early April believes that there will be further increases of €50-60/ton in May due to tightening supply. A third trader who sold West European and South African PP cargoes with €100/ton increases opines that prices will continue to rise in May by €70-80/ton due to the ongoing tightness and rising spot propylene prices.
Some buyers have reported to have purchased some cargoes at the very low end of the spot ranges for Central and South European origins, as well as South African and Brazilian origins, amid slow end product demand. The suppliers informed them about the severe tightness and new round of increases expected for May. The overall range is reported at €1170-1300/ton for homo PP and €1230-1350/ton for PP block copolymer on FD North Italy, 60/90 days deferred payment.