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(ICIS) -- Polypropylene (PP) buyers in
Europe are pushing producers hard to get a share of the ?37/tonne ($51/tonne)
drop in the September propylene contract price, and several say they have
achieved lower prices, sources said on Wednesday. “Discussions are still open
for September,” said a major PP producer, “but we are facing pressure to drop
prices.”
PP buyers built up stock in July and August. Many have returned from
holiday but have not been faced with the higher prices that producers had
predicted for September. Order books are not as healthy as they were, say some
buyers.“We have an order book of only 15 days,” said one.
“Demand is
limited,” said a PP producer. “Our clients are comfortable. They have
stock.”
Most buyers saw minus ?20/tonne as the starting point of September PP
pricing discussions. However, some already report that they have been conceded
the full ?37/tonne drop that producers gained in the propylene contract price,
and not only those whose prices are linked to propylene.
The propylene
contract now stands at ?1,078/tonne FD (free delivered) NWE (northwest Europe),
down by ?37/tonne from its August level. This price is subject to
discounts.
mrcplast.com |
