PP demand has been quite low in Italy despite price hikes of €70-100/ton as per Chemorbis. Deals have been concluded for limited volumes as buyers continue to buy at hand to mouth levels. Converters have mostly resisted offers above €1100/ton for homo PP as they could find relatively lower offers in the range of €1030-1080/ton FD North Italy, 60/90 days deferred payment.
Despite the persistent lethargy in PP demand, more sellers are pronouncing their expectations about further firming for March, mainly due to support from propylene feedstock. Spot propylene values are currently standing above early January at €925-935/ton FD NEW, and higher than February propylene contract settlement at €875/ton. Coupled with tight propylene availability in the region, a higher settlement for propylene is estimated next month, that will inevitably lead to higher prices for PP. An early price hike of €80/ton has already surfaced in the PE market. However, it is early to cast an opinion if buyers will agree to accept their targets or to what extent these increases will pass in March.