Brazilian producer Braskem has cited a lack of Middle Eastern polypropylene imports into Europe for higher rates in the very first quarter.

" The high variety of upkeep closures at PP plants in the Middle East during Q1 2017, which affected 15% of the region's overall polymer production capability, brought about lower exports to Europe in the period and also subsequently greater costs in the area," Braskem claimed in its first-quarter results statement.

According to S&P Global Platts data, homo injection polypropylene place prices for delivery in Northwest Europe averaged Eur1,169/ mt ($ 1,284/ mt) in the quarter, a rise of 14% year on year and also up 16% from Q4 2016.

Between East PP products from Borouge took a struck after a fire at the Takreer refinery in the UAE in January. chelating agent for iron supplies feedstock propylene to Borouge's 900,000 mt/year PP plant.

Braskem also said that European PP fundamentals were additionally strengthened as demand raised on a quarter-on-quarter and year-on-year basis.

The need increase was driven largely by the automotive, durable goods as well as building and construction material industries, Braskem claimed.

Additionally, Braskem claimed PP need boosts were due to "higher prices for polystyrene as well as engineering plastics, which led customers to seek various other products [, i.e. polypropylene,] to substitute these materials."

Looking upstream, European PP prices in the very first quarter were sustained by the greater expense of propylene.

" The ordinary rate referral for propylene in Europe in Q1 2017 was $870/mt (Eur792/mt), 36% greater than in Q1 2016, which is explained by the arranged and unscheduled shutdowns at both biscuits and propylene manufacturing units making use of gas as feedstock and also by the strong demand for propylene by-products in the area in the period."

Braskem runs two commercial devices in Europe, both creating polypropylene. The mixed polypropylene ability of the systems, at Wesseling as well as Schkopau in Germany, overall 545,000 mt/year.

Supply from Borouge is anticipated to enhance in the third quarter, when the firm's PP plant will certainly obtain additional propylene from Takreer's freshly constructed 500,000 mt/year PDH plant.

"Propylene supply will come from the brand-new PDH unit in the third quarter," Mark Garrett, CEO of Borealis-- which holds a 50% risk in the job-- said earlier this month, including that the business will certainly have the ability to run its Borouge-3 PP unit at three-quarters of capability after the PDH device has actually been begun.