Buyers of polypropylene (PP) in the European market faced a strong price increase in March, amid a limited supply caused by good demand, stopping the capacity for prevention, some manufacturing problems and a shortage of imported material volumes, ICIS sources told the market.

The final range of price increases is still unclear in the current month, but some sellers are talking about an increase in prices at EUR90 per ton. Others were willing to go for a smaller amount of price increases. Meanwhile, there were very few offers below EUR60 per tonne, sources said.

Spot prices for injection molds homopolymers of propylene (PP homo) have skyrocketed to at least EUR1,200 per tonne of FD NWE (North-West Europe), and only a few buyers have been able to obtain volumes at prices below this level.

Buyers of copolymers of propylene were under greater pressure than PP-homo consumers, since LyondellBasell force majeure for the supply of material from Brindisi (Brindisi, Italy) is still in force. Force majeure was declared on January 26 initially for a limited number of brands, but then was distributed to all brands of PP produced at the enterprise in Brindisi.

Negotiations on prices are still under way, and although oil quotes have dropped lower, sources expect that prices in the European market will remain at a high level until supplies of imported material increase.

Given the lower prices in Asia and the higher prices in Europe, in Asia quotes are still more attractive to sellers.