Market turmoil, Europe plans to increase PP, PE prices

Buyers of European PE and PP are facing a strong rise in March results as costs continue to soar against the backdrop of deteriorating relations between Russia and Ukraine
.

Producers are looking to secure price hikes that include not only a €95/t increase in ethylene and propylene monomer contracts, but even additional surcharges to cover some of the increase in energy prices
.

Monthly prices have yet to be set, and increases vary by grade, location, and use
.

Some buyers said there was no shortage of supply and that higher prices should be adjusted accordingly, while others preferred to secure supply as high costs eroded producers' profit margins and they feared some output could be cut
.

naphtha

Naphtha, the main driver of ethylene and propylene prices, is now $150/ton higher than when it was delivered in March, raising concerns about oil prices in April
.

Difficulties in unloading at Black Sea ports mean that some PE and PP producers see cracked naphtha supply as crucial, which is one of the most potential problems facing downstream PE and PP
.

Cracking margins are under pressure as naphtha costs soar
.

need

Application requirements are more complex
.
Food packaging demand is better, but processors see no further growth
.

With some PP supplies in balance in parts of southern Europe, not all buyers think prices will rise as much as sellers hope
.

BOPP demand in the European market is good, but imports of manufactured goods have led to some supply constraints
.

spot price

Spot prices have been rising, but in mixed ways, with some spot sellers disappointed by buyers' lack of enthusiasm for paying higher prices
.

While imports are still making their way into Europe, there are some problems with it
.

The source said MLLDPE was scarce as some imports were missing in March
.

contract price

Several suppliers were late in announcing their pricing intentions to buyers, and prices for most freely negotiated March contracts have yet to be set
.