PP price in Italy

In Europe, propylene costs have been on a constant firming trend for some time due to the persistent production issues in the region. Although spot propylene values gained further ground last week rising to 950-960 euro/ton, finding an extra support also from higher crude hovering above 80 dollars/bbl and soaring naphtha prices, competitive PP offers continue to emerge in Italy.
Taking the recent spot propylene values into account, a theoretical cost of producing PP corresponds to 1,100 euro/ton after adding an estimated conversion cost of 150 euro/ton disregarding inland freight rate. Even though PP sellers are asking for increases of 50-75 euro/ton for March, the Italian market is still seeing offers below this 1,100 euro/ton threshold, which sellers are trying to surpass for homo PP. The general homo PP offer level reported from sellers stands at 1,110-1,200 euro/ton North Italy, 90 days deferred payment. However, late last week a buyer reported having received an offer for a West European origin at 1,080 euro/ton with the same terms while a second buyer purchased some cargoes at 1,050 euro/ton from a West European producer on North Italy, cash payment basis. (Source ChemOrbis)