Contradictory factors in Europe lead to mixed expectations for PP
May PP deals are being concluded with rollovers or modest increases of up to €30/ton in Europe nowadays as sellers trimmed their initial hike requests given muted demand. Players already started to express their June expectations amidst a market scene that is caught between slow activity and firmer costs.
The majority of May transactions were reported at flat or €10-20/ton higher levels from April this week in Italy and West Europe. Expectations are now calling for a mostly stable trend next month while some players do not exclude the possibility of slight discounts pointing to demand conditions. On the other hand, spot naphtha and propylene prices in the region are firmer and the PP market may not ease depending on the outcome of new propylene contracts, according to others.