Early sell ideas for November PP, PE offers emerge in Italy

Now that the monthly propylene and ethylene contracts have recently settled, early sell ideas for November in Italy's spot PP and PE markets have also emerged. Following the decreases that already occurred in October, early offers for European cargoes indicate a stable to soft trend.

A trader who already cut their offers by €40-50/ton in October to €1050/ton for West European LDPE film reported that their West European supplier has informed them about their November pricing, which has come down by another €40/ton. The November sell idea of the trader now stands at €1010/ton FD North Italy, 60 days deferred payment. Further decreases will be unavoidable given the improving supplies in spite of the higher upstream costs, he thinks. Some buyers also commented that although they have not received official offers from their suppliers yet, they expect to see minimum decreases of €40/ton next month.

Another trader reported that now that ethylene settled with a modest decrease of €27/ton, he has decided to hold his offers for Russian HDPE film stable at €950/ton as his prices were already standing at the low end of the overall range in October.

In the PP market, a third trader noted that although he has not received an indication from his suppliers yet, he aims to lower his homo PP offers for a West European origin by €20/ton to €1020/ton while he wants to sustain the offers for a different West European origin at €980/ton FD North Italy, 90 days deferred payment. He commented that European supplies are tight and the propylene contract settled only €10/ton lower, which does not justify large decreases in the PP market.