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Market Monitor | September 2015

PP prices dip

European polypropylene (PP) prices are going down by at least the €80/tonne propylene monomer contract drop for August. Supply has eased from its former extreme tightness, and most monthly prices are dropping by more than the €800/tonne monomer drop, according to buyers.

PP prices have been rising by much more than the propylene price in recent months, and a third producer said it saw the current price movement as an adjustment to more normal levels, than anything significant. Southern European demand was expected to be hard hit during the rest of August, now that volumes and prices had been settled.

Supply of most PP grades has returned to normal after several force majeures earlier this year but INEOS´s Grangemouth, UK, extended outage is expected to limit volumes to some buyers in the coming days. Force majeure remains in place on PP from Lavera, France, from both joint venture partnerships at the site, Total Petrochemicals and INEOS, and Total retains force majeure in place on the entirety of its PP production in Europe.

Courtesy: ICIS Chemicals Update

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