Total Petrochemicals modifies 4 cent/lb October US polypropylene price increase to November

Total Petrochemicals & Refining USA will modify its proposed October increase of its polypropylene products by 4 cent/lb to Nov. 1, the company has said.

"The October 1, 2020 effective date of the price announcement originally dated September 8, 2020 is being modified," Total told customers in a letter obtained by S&P Global Platts Oct. 15.

The increase is in addition to any change in monomer pricing, the company said in the letter, dated Oct. 14.

The company was not available for immediate comment on the announced increase.

The proposed hike adjustment comes amid snug availability of supply for domestic and export players in Q4. Initially maintenance work aggravated start up times amid two hurricane landfalls in the US Gulf Coast.

In general, market players have seen little to no availability for exports and pricing has been deemed too high compared to other global markers. Market expectation was that pricing would be corrected as soon as November.

However, with new price increases for November, the expectation for corrections could be pushed back further, sources said.

Platts last assessed export homopolymer injection-grade polypropylene up $11 on the week Oct. 14 at $1,257/mt FAS Houston, based on strong demand and tight supply, sources said.

Domestic PP pricing was last assessed stable week on week Oct. 14 at 54 cents/lb delivered rail car basis for homopolymer injection grades. Pricing includes a market-accepted 18-cent premium over settled September feedstock PGP contracts at 36 cents/lb.

Domestic pricing was also flat on the week at 56 cents/lb delivered rail car basis for homopolymer fiber, which maintained a 20-cent premium over the PGP contract. Domestic September PGP contracts settled at a rollover Sept. 24.