The price spread between homo-injection and copolymer polypropylene grades in Europe has widened this week, market sources said Thursday, with copol values rising faster than those for the more widely available homo-injection grade.
Homo-injection prices were up Eur10/mt at Eur1,130-1,135/mt FD NWE (around $1,340/mt), while copol prices jumped Eur25/mt to Eur1,195-1,200/mt, according to Platts data.
Inflows of imported PP, mainly from the Middle East, were the main driver behind the widening gap, traders said.
"Homo-injection is much more influenced by imports. We have a lot of imported homo-injection material coming in but no so much copol," a trader said, adding that copol grade available in the continent is mainly supplied by European producers.
The trader said there was "nothing below Eur1,200/mt," adding that price ideas for copol were in a wide range of between Eur1,210/mt and Eur1,250/mt.
Another trader said that copol prices had surged to around Eur1,230-1,240/mt FD NWE.
"[Copol suppliers] are very aggressive in the market," he said.
An industry source said even end-users were quoting Eur1,220-1,230/mt FD NWE for spot copol material.
Imported cargoes were heard offered in the continent over the past several weeks, triggered by the strong euro and supply issues brought about by the French strike-related production disruptions.
These offers have started to dissipate, however, as overseas suppliers shift their sights to Asia where PP markets have rallied on the back of robust demand in China, sources said.
Traded volumes for spot PP supply were relatively light this week, with one trader describing it as "hand-to-mouth" buying as the year-end approaches.
Many sources agreed that the European PP market is broadly balanced, with most of them agreeing that producers and consumers are likely to keep inventory low during the traditionally quiet December-January period.
Homo-injection prices were up Eur10/mt at Eur1,130-1,135/mt FD NWE (around $1,340/mt), while copol prices jumped Eur25/mt to Eur1,195-1,200/mt, according to Platts data.
Inflows of imported PP, mainly from the Middle East, were the main driver behind the widening gap, traders said.
"Homo-injection is much more influenced by imports. We have a lot of imported homo-injection material coming in but no so much copol," a trader said, adding that copol grade available in the continent is mainly supplied by European producers.
The trader said there was "nothing below Eur1,200/mt," adding that price ideas for copol were in a wide range of between Eur1,210/mt and Eur1,250/mt.
Another trader said that copol prices had surged to around Eur1,230-1,240/mt FD NWE.
"[Copol suppliers] are very aggressive in the market," he said.
An industry source said even end-users were quoting Eur1,220-1,230/mt FD NWE for spot copol material.
Imported cargoes were heard offered in the continent over the past several weeks, triggered by the strong euro and supply issues brought about by the French strike-related production disruptions.
These offers have started to dissipate, however, as overseas suppliers shift their sights to Asia where PP markets have rallied on the back of robust demand in China, sources said.
Traded volumes for spot PP supply were relatively light this week, with one trader describing it as "hand-to-mouth" buying as the year-end approaches.
Many sources agreed that the European PP market is broadly balanced, with most of them agreeing that producers and consumers are likely to keep inventory low during the traditionally quiet December-January period.
