(nctww) -- This month, European PP, PE and PS suppliers were able to pass their initial hike targets for the most part, which were in excess of the rise in the February monomer contract prices. Restricted supplies on the producers' side, along with strong upstream costs, which continued to rise this month, helped sellers have an upper hand in negotiations during the month.
Feedstock costs remain firm and spot monomer prices are standing at noticeably higher levels compared to the start of February, signaling a renewed upward rally in March.
Although there is active buying interest from buyers, many sellers are reluctant to give offers for high volumes these days, claiming to have restricted quantities. According to buyers' reports, some suppliers are refusing to give additional volumes while some are asking for further price hikes on top of their initial February prices.
⌠Suppliers are implementing further increases on their prices due to widespread expectations of new price hikes in March. Last week we purchased only 1 cargo of additional PP quantities paying EUR40/ton higher prices compared to the beginning of the month. Supply is apparently tight because we were not able to get more than 1 cargo from the West European supplier, a compounder told.
⌠After concluding our PP agreements paying three-digit price hikes, we asked the producers for 200 tons extra, but the suppliers refused to sell these quantities, another converter producing food containers stated.MRC