MOSCOW (MRC) – September contract prices of propylene grew by EUR105/tonne, but European makers are going to get a price rise of PP by EUR150-200/tonne, report MRC analysts.
On Friday, September contract prices of propylene were agreed in Europe. Monomer for September shipments rose in value by EUR105/tonne from August. However, this month European makers intend to get an increase in PP prices by EUR150-200/tonne on low margin and tightened supply.
Negotiations on September level of export PP prices for CIS countries have just begun, but European makers are already voicing their bold statements regarding September prices. Price-offers for September shipments of homopolymer PP are voiced in the range of EUR1,320-1,380/tonne, FCA.
It is rather hard for many companies importing European PP to accept the current rise in prices. Over the past two months PP prices have risen by more than EUR300/tonne. As buyers of European PP report, they are already in no position to influence the price formation process since there is no serious alternative at the moment. Over the past two months Asian makers have been selling their volumes quite speedily. Middle Eastern producers decided to adapt to the European market.
MRC