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Latin American polypropylene producers eye growing European propylene length
查看次数:1699   更新时间:2015-10-27 19:46:40
Latin American polypropylene producers are keeping an eye on recent length in the European propylene market and its impact on spot prices, sources said, adding that US-origin propylene pricing still remains more desirable. 

Both Colombia's Esenttia and Mexico's Indelpro have been bright spots in the region's import market throughout 2015, as they attempted to keep up with strong domestic and regional demand. 

Those producers have benefited from low-cost propylene from the US Gulf Coast, but recently Europe-origin cargoes have made it into the region, sources said. 

Meanwhile, the European maintenance season is ending, which could add more length to the market in the short term. 

"The US price is the most economical globally," a source close to polypropylene producer Esenttia said, adding, "It depends on how long Europe is and if it makes it too competitive [for US product] to this region." 

In Mexico, Indelpro has benefited from its proximity to the US Gulf and imported material in late-October, but it has also imported from Europe. 

A 9,000 mt cargo was unloaded at the Mexican port of Altamira in mid-October. "Europe was long for a period, allowing us to purchase medium-sized cargoes," the source said. 

Platts assessed November and December PGP up 1 cent ($22) for the day at 30-30.5 cents/lb ($661-$672/mt) following higher November bids and recent gains in crude prices as well as production startup delays.
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