PP – North West Europe General Outlook
Spot Monthly Prices Local Market (FD NWE €/ton) Polymer
In January for PP weak demand, lack of supply concerns Highlights PP January business closed with reductions of €20-35/ton Monomer Jan contract price down €35/ton Spot monomer gains €50/ton over Dec Calm demand and sufficient supply Cracker turnaround season might weigh on PP market
Prices
PPH
1180 - 1280
PPBC
1230 - 1330
Feedstocks Wk. N.
Crude Oil WTI USD/bbl
Crude Oil Brent USD/bbl
Naphtha CFR Japan
Naphtha CIF NWE
19-04
53
62
490
459
19-03
52
61
494
461
19-02
51
60
475
455
19-01
47
56
449
441
18-52
45
52
463
442
In North West Europe, most sellers have started to reveal their January prices with rollovers to €20/ton decreases compared to December prices. The monomer contract price for January in fact settled at €925/ton with a decrease of €35/ton. In the spot market instead, propylene followed an upward trend for some production issues in the region and the restart of activities. Week after week spot monomer prices gained a total of about €50/ton versus December, closing the month at about €925-930/ton. Despite some Force Majeure declared at some PP plants in Germany, France and UK, supply remained good and with a thin demand, suppliers had to concede further discounts later in the month. Considering comfortable stocks from buyers and expectations of not seeing any improvement in short term demand, January deals were concluded mainly with decreases of €20-35/ton. Buyers are afraid about the supply issues that may come from the upcoming maintenance season, when several crackers have already planned their shutdowns. For February, PP players mostly believe that the propylene contract may settle with small increases of €10-20/ton, supported by stronger energy costs and spot monomer prices.
500
65
490
60
480
55
470
50
460
45
450 440
40
430
35
420
30 24/12
31/12
07/01
14/01
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S H A N G H A I
| K U A L A
L U M P U R
21/01
Week Start Date Crude Oil - WTI USD/bbl
Crude Oil - Brent USD/bbl
Naphtha CFR - Japan
Naphtha CIF - NWE
Propylene Monomer Spot Wk. N. 19-05
CFR-FEA Weekly 920
FD-USG Average 840
FD-NWE (USD/ton) 1060
19-04
920
830
1050
19-03
930
820
1040
19-02
920
820
1030
19-01
900
830
1000
Abbreviations: NWE: Northwest Europe, USG: United States Gulf, FEA: Far East Asia Note: Indicative prices are given based on latest available figures. Prices are translated to USD/mton and with the exception of naphtha have been rounded to the nearest ten. Crude and naphtha prices represent weekly averages up to the date of publication.
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Crude Oil USD/bbl
General Outlook
Naphtha USD/mton
January 2019
Monthly Report
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