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(ICIS) -- US polypropylene (PP) demand has improved in March, but
the rebound may be temporary as spot prices rise and buyers build inventory
ahead of likely April price hikes, sources said on Thursday.
Buyers and sellers cited forecasts that feedstock propylene costs will
rise by 5–10 cents/lb (USD 110–220/tonne, EUR 78–156/tonne) in April, driving PP
contract prices up by an equal amount.
Buyers are generally operating with low inventories, and some have been
hesitant to purchase spot material at higher prices than contract, a trader
said.
Spot prices for prime homopolymer were heard at 80–83 cents/lb FOB (free
on board) USG (US Gulf) in railcar. Traders said these prices were not workable
to any export markets.
Major North American PP producers include LyondellBasell, ExxonMobil, INEOS, Total, Formosa,
Phillips Sumika, Braskem Americas, Pinnacle Polymers, ConocoPhillips, Flint
Hills Resources and Dow Chemical.
mrcplast.com
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