May PP hikes passing in Italy

Sellers in Italy are seeking price hikes ranging from 50 to 70 euros/ton for May. Although demand is not great and there is resistance at the high end of the price range, producers are supported by persistently tight supplies. Some buyers have started to accept sellers' hike requests, albeit for prices at the low end of the range.
A buyer concluded deals directly with southern and central European producers, paying 50-60 euro/ton increases over April at 1,250 euros/ton for homo PP and 1,300 euros/ton for PP block copolymer (FD North Italy, 90 days deferred payment). His end product demand for compounds is a bit slow and he is buying on a needs only basis as he wants to avoid building stocks, he said.
Another buyer reported that they paid 20 euro/ton increases over April for their southern European cargoes at 1,250 euro/ton for homo PP and 1,300/ton for PP block copolymer, which again form the low end of the ranges. Although demand remains weak, supplies are still tight and there have been difficulties finding materials. He complained that the price hikes producers are seeking are unacceptably high.
A third buyer producing compounds reported that he concluded some spot deals and gentlemen's agreements for May paying 50 euro/ton increases over last month, both of which are at 1,280 euros/ton for homo PP and 1,330 euros/ton for PP block copolymer. As supply is tight, they are having problems finding materials, he added.
Last week, the overall spot range stands at 1,250-1,330 euros/ton for homo PP and at 1,300-1,380 euros/ton for PP block copolymer (FD North Italy, 60/90 days deferred payment). Buyers are finding prices above 1,300 euros/ton for homo-PP too high to accept while sellers offering close to the high end of ranges are also admitting slow sales. (Source ChemOrbis)