PP deals settling higher for May in NW Europe

Players in Northwest Europe report that May deals for PP are settling with increases from the previous month while adding that prices are likely to follow a stable to firmer trend in June as well, as per ChemOrbis. Limited availability was cited among the main reasons for the upward movement in prices while demand is generally said to be normal. A distributor based in Germany reported concluding deals for West European PP block copolymer and homo-PP injection with €20/ton increases from the previous month. “Demand is not all that encouraging, but we managed to secure some increases on our deals owing to limited supply,” the distributor stated. A converter manufacturing food containers also reported concluding deals for West European homo-PP injection and PP block copolymer with €20/ton hikes. “Demand for our end products is regular while supply is tight. We believe that we will be able to secure rollovers or small increases on our June deals,” the buyer reported. A buyer in the packaging sector is said to have secured West European BOPP and PP block copolymer after paying €20/ton hikes. “Our suppliers suggested that we engage in some pre-buying, but we decided not to do so as we do not think that sellers will be able to achieve additional increases next month,” the buyer stated. Meanwhile, a distributor based in Belgium said that they concluded their May deals with €20-30/ton increases. “Demand for PP random copolymer is not very good, but demand for other PP products is satisfactory. We are not experiencing any real shortness in supply, although we are unable to meet customer requests for additional cargoes,” the distributor stated. A Belgian converter manufacturing plastic containers said that they purchased West European PP film €20/ton higher than last month while adding that demand for their end products is normal and that they expect to pay rollovers in June. According to ChemOrbis, a French converter in the household products sector reported concluding May deals with hikes of €30/ton, commenting that demand for their end products was not bad this month. A packaging manufacturer based in France reported paying €20/ton hikes for PP film and PP block copolymer. “We had sufficient stocks for PE this month, so we only purchased PP,” the buyer stated. Meanwhile, a French distributor said that they sold West European PP block copolymer close to a rollover from April. “We believe that sellers will attempt €10-20/ton hikes next month, but we do not think that demand will prove strong enough to support these hike attempts,” the distributor commented.