Logistical problems and shortages of raw materials cause significant increases in the prices of plastic resins for the European market.
Polypropylene (PP) prices rose sharply this week in the European market as a result of limited domestic availabilities, supply shortages and disruptions to shipping traffic in the Red Sea.
According to sources consulted by Polymerupdate, logistical disruptions in the Red Sea delayed the arrival of orders, even as spot prices were trading higher due to freight rates.
As a result of these bottlenecks, contract prices are experiencing an upward trend, as consumers have shown a willingness to negotiate higher price levels, while continuing to struggle with tight supplies of materials.
On the extreme spectrum, buyers make purchases in minimal quantities in order to avoid building up inventory.
Polypropylene prices continue to rise
In spot markets, prices for PP injection molding grade were assessed at €1,115-€1,125/mt FD in northwest Europe, up one euro weekly (+50/mt) from last week. Meanwhile, PP block copolymer grade prices were assessed at €1,175-1,185/mt FD North West Europe levels, a strong gain (+50/mt) from the previous week.
In the contract markets, prices for PP injection molding grades were assessed at the levels of 1,340-1,345 euros/tm for the polymer grade material FD NWE Germany and FD NWE France, both increased by euros (+30 /tm). Prices for PP injection molding grade were assessed at the levels of 1,330-1,335 euros/mt FD NWE Italia, an increase of euros (+30/mt) from last week.
Meanwhile, PP injection molding grade prices were assessed at GBP 1,145-1,150/mt FD NWE UK levels, up GBP weekly (+25/mt).
PP block copolymer grade prices were assessed at the levels of 1,420-1,425 euros/mt FD NWE Germany and FD NWE France both increased in euros (+30/mt) from the previous week.
Prices for PP block copolymer grade were assessed at the levels of 1,410-1,415 euros/mt FD NWE Italy, a weekly increase of the euro (+30/mt). PP block copolymer grade prices were assessed at GBP 1,215-1,220/mt FD NWE UK levels, a gain of GBP (+25/mt) from last week.
FCA Antwerp’s PP homopolymer prices were assessed at levels of 1,100-1,130 euros/mt, considerably higher in euros (+50/mt) week on week. FCA Antwerp PP copolymer prices were assessed at levels of 1,150-1,180 euros/mt, a weekly increase of the euro (+50/mt).
Upstream Propylene spot prices were assessed on Wednesday last week at €955-965/mt FD North West Europe levels, a strong weekly rise for the euro (+55/mt).
The European propylene feedstock contract price for January 2024 was set at the Northwest European levels of €1,050/MT FD. This price represents a reinvestment from its December 2023 settlement levels.