South American propylene is due to be imported into Europe because of an open arbitrage, sources said Friday. A South American seller of propylene who had fixed propylene for Northwest Europe said: "The market is good for propylene [sales from South America] in both regions, the US and Europe, with polypropylene very strong." The seller said the material had not been sold at a discount to the current Northwest European contract price but declined to specify further.
The NWE propylene contract price for February was fully settled Tuesday at Eur815/mt ($875/mt) FD, up Eur45 on the month.
The uptick in polypropylene's feedstock contract price is in part a result of increases upstream, with naphtha rising close to 4% in January, alongside more bullish fundamentals in the European propylene market.
Market sources in Europe said spot prices were close to level against the current contract price this week.
US spot polymer-grade propylene was assessed 0.50 cents higher Thursday at 47 cents/lb [$1,036/mt] FD USG for prompt-month deliveries.
