A wide spread between Northwest European-produced polypropylene and imports is turning sentiment bearish in the European spot market, sources said.
Imported material from Asia, South America and the Middle East was offered at Eur1,150-Eur1,200/mt ($1,255-$1,310/mt) FD NWE this week, European-produced material was heard Eur100/mt higher at Eur1,250-1,300/mt FD NWE, sources said.
However, interest in imports has so far been subdued despite them being considerably cheaper.
"We still only see some imports. There is not too much demand for them as not everyone is able and willing to use those products. Most stick to their approved European products," a trader said.
Nevertheless, the mere presence of low import offers in the market was helping buyers negotiate lower prices for European-produced material, sources said.
S&P Global Platts whose spot assessment considers domestic and/or imported prime material on Wednesday assessed PP Eur25 lower on the week at Eur1,225/mt FD NWE.
Import offers were expected to fall further as the arbitrage from origins such as Asia can accommodate this.
The CFR Far East Asia polypropylene homo injection marker fell $10 week on week to $975/mt on Wednesday.
Meanwhile, a distributor for a South American producer said their offers had fallen as much as $100/mt week on week with the aim of stimulating European demand.
The West Cost South American homo polymer assessment fell $35 on the week to a Wednesday assessment of $1,120-$1,130/mt CFR.
