European PP market may take reverse turn, prices likely to go higher

Plastic Recycling  |  2013-05-20 07:17:17   |   By

The spot prices of PP in European markets are quoting lower when compared to previous month, but most sellers forecast hike in prices towards the end of the month

LONDON (Scrap Monster) : The spot prices of PP in European markets are quoting lower when compared to previous month, but most sellers forecast hike in prices towards the end of the month.

The spot PP prices are still lower by at least €60-80/ton compared to April. According to sources, the Central European homo PP suppliers are in receipt of orders from Italy with €60/ton higher quotes. Traders in Belgium have also disclosed that they are planning to raise the prices of PP prices by nearly €50/ton. The price hike is scheduled to be brought into effect towards the end of this month.

The expectations for better prices are mainly centered around increased demand and higher naphtha costs.

The rest of the global PP markets have witnessed a shift in trend of PP prices. The European sellers are also optimistic that the global trend may have its effects on domestic market, thereby help the European PP market to snap its four-week falling trend.

Naphtha costs have shot higher, but a corresponding hike in PP prices have not been in effect so far. It needs to be seen whether the buyers oblige to the higher prices quoted by European PP sellers.