The European spot price of polypropylene hit a two month-high on the back of a bullish feedstock propylene and maintenance shutdowns, S&P Global Platts data shows. The European spot price of homo injection grade PP was assessed at Eur1,150/mt (about US$1,350/mt) FD NWE Wednesday, up Eur15/mt on the week and at its highest since May 30. Copolymer PP was assessed at Eur1,200/mt FD NWE, up Eur15/mt on the week and at its highest since June 7.
Shell Chemical's declaration of force majeure on propylene at its Moerdijk steam cracker in the Netherlands last week was also noted to have starved some polymers producers of feedstock, resulting in tighter availability, market sources said.
The European spot price of August propylene was last assessed at Eur820/mt FD NWE, or Eur30/mt above the August CP of Eur790/mt. An overall rise in the crude oil complex, and consequently cracker feedstock naphtha, has also lent support to European propylene.
Additionally, a three week shutdown at Sabic's copolymer plant in Geleen, in the Netherlands, had a tightening effect on copolymer grades.
A Europe-based converter said this week that copolymer "looked a tighter market" this month compared with July.
A second converter source said on Thursday that the bullishness in the propylene market was likely to push PP spot prices upwards going into September.