Lower spot offers prevail in Italy's PP market

Spot homo PP offers below €900/ton first showed up in Italy last week, which were not very common in the market up until late this week. However, buyers have started to receive offers below this level more frequently for November.

A buyer reported that he received November homo PP offers directly from a West European producer at €870-890/ton FD North Italy, 60 days deferred payment, representing a rollover to €20/ton decrease from October. He is planning to hold his purchases until the second half of the month, when he expects to see much lower prices.

A second buyer received offers for different West European homo PP cargoes at €880/ton from a broker. Although he found the price competitive when compared to the other offers he received, he thinks that PP prices will decrease further during the month.

Having received offers for West European homo PP at €870-880/ton, a third buyer made similar comments and reported his intention to wait for some time before engaging in new purchases.

The settlement of the November propylene contract with a €10/ton discount has clarified the expectations for the PP market, affirming the stable to soft trend.