(ICIS) -- Several polyethylene (PE) and polypropylene (PP) buyers in Europe expressed concern on Thursday over increases in upstream ethylene (C2) and propylene (C3) contracts.
⌠The market is not going to be able to support this, one PP buyer said, commenting on producers' targets to cover the EUR 35/tonne (USD 51/tonne) increase in the May propylene contract price. The contract settled on Wednesday at EUR 1,245/tonne FD (free delivered) NWE (northwest Europe).
Another PP buyer felt the new propylene contract price was too high and failed to reflect market fundamentals. ⌠We've been robbed again, he added.
PE buyers are no less frustrated. ⌠The best they can get from this plus EUR 25/tonne is a rollover in PE, one buyer said.
The ethylene contract for May settled on Wednesday, up EUR 25/tonne, at EUR 1.230/tonne FD NWE and producers have already made it clear they will seek at least to cover the EUR 25/tonne increase in the monomer contract, with some sellers gunning for more.