LyondellBasell Targets €125/t Hike for Sept PP on High Propylene
LONDON (ICIS news)--Major plastics producer LyondellBasell is targeting a €125/tonne ($179/tonne) increase for September polypropylene (PP) in Europe following the unexpectedly high propylene settlement, a company source said on Friday.
The move came after propylene was agreed up €93/tonne at €778/tonne FD (free delivered) NWE (northwest Europe) on Thursday.
Another major PP producer said it would be looking for a €125/tonne increase also, as this would cover the propylene hike and also add some margin.
PP availability was tight, mainly due to reduced output rather than very strong demand.
Demand had improved during the second half of 2009, however, and PP producers were confident of achieving big increases in September.
Most buying sources acknowledged that they would have to pay a lot more for their material in September.
“We will have to live with these prices. It is the reality,” said one large PP buyer.
PP and polyethylene (PE) producers in Europe include LyondellBasell, Borealis, SABIC, Total Petrochemicals, Dow Chemical, Repsol, INEOS Olefins and Polymers, Polychim and Domo.
The move came after propylene was agreed up €93/tonne at €778/tonne FD (free delivered) NWE (northwest Europe) on Thursday.
Another major PP producer said it would be looking for a €125/tonne increase also, as this would cover the propylene hike and also add some margin.
PP availability was tight, mainly due to reduced output rather than very strong demand.
Demand had improved during the second half of 2009, however, and PP producers were confident of achieving big increases in September.
Most buying sources acknowledged that they would have to pay a lot more for their material in September.
“We will have to live with these prices. It is the reality,” said one large PP buyer.
PP and polyethylene (PE) producers in Europe include LyondellBasell, Borealis, SABIC, Total Petrochemicals, Dow Chemical, Repsol, INEOS Olefins and Polymers, Polychim and Domo.
quoted from: ICIS.com
