European polypropylene converters have begun to restock amid rises in feedstock propylene and naphtha prices, sources said Wednesday.
Propylene spot prices were assessed at Eur738/mt ($839.50/mt) FD NWE Wednesday, compared with Eur719/mt a week ago.
Naphtha was assessed at $481.25/mt CIF NWE from $413.25/mt.
“I am restocking now, looking at the rally in crude,” one converter said Wednesday.
Front-month Brent was trading at $56.10/b Wednesday, compared with $49.23/b a week ago.
A producer said: “Converters’ stocks are low, [so] any future fall in price is not expected to be steep.”
A supply overhang was heard in the European PP market in January as converters in Europe had stepped out of the market amid bearishness in propylene.
The propylene February contract price fell Eur80/mt on the month to Eur755/mt FD NWE.
Both converters and producers converged towards the idea that the full monomer pass-through was unrealistic given recent hikes in upstream prices.
PP February contract prices were down Eur50/mt at Eur1,125-1,130/mt FD NWE Wednesday.
– Platts.com
