Since buying in the Europe has come to a halt, the markets are expecting a decline in prices of PP in December.
Even as avails of PP in Europe have recorded improvement with the reopening of various plants, propylene feedstock prices are registering weakness.
Manufacturers are seen resigning to the slumping regional fundamentals admitting that it would not be easy to achieve a roll over for their PP prices next month.
The majority buyers are expecting a price reduction of a minimum of Euro 50/mt while some are anticipating for larger decreases.
While settling deals with manufacturers, many buyers are quoting cheap offers in PP from traders, though they are still interesting in working with manufacturers as they want to take benefit of end of year rebates.
In the meantime, spot prices are now standing below the Euro 1100/mt at the Euro 1080/mt with further drops expected; while PP contract prices continue to be firm at the Euro 1200/mt. However buyers look forward to a rapid price down in contract prices next month.
In production news, Basell will reopen its 220 kt/annum PP line at Wesseling, Germany this weekend.
A technical issue has stumbled the unit last weekend, however the report of the stoppage did not have any serious effect on the markets.
Basell has also reopened this week its 260 kt/annum unit positioned at Pernis, the Netherlands after the completion of a planned turnaround which started earlier in the month.
