The start of August still saw slight price declines for standard PP grades. Over the following week, the situation stabilised, and the result was frequently a rollover. Nevertheless, the month saw marginal declines.
For the first time, the compounds felt the influence of the new system of indexing to standard PP prices. Despite the firming trend for propylene, most compounded grades followed the declines in standard material over the preceding months. This trend mainly reflected the usual weak demand in the key summer holiday month of August.
The light-coloured compounds were an exception; they remained mostly stable under the influence of the sharp rise in titanium dioxide contract prices.
The propylene reference contract for September saw a rise of €20/t ($22). Standard grades can now be expected to rise by the same margin, though here and there the hikes could be steeper. Due to the indexing, the compounds also will come under this influence and trend higher. However, it remains to be seen whether this will have happened in September.
data provided by PIEWeb www.pieweb.com