MOSCOW (MRC) -- December contract price of propylene in Europe was settled down by EUR100/tonne from November. Taking it into account, all European producers announced a decrease in export prices of polypropylene (PP) for deliveries to the markets of the CIS countries in December. But price cuts are not proportional to the fall in monomer prices, according to ICIS-MRC Price Report.
Negotiations over December prices of European PP began last week. All market participants reported the desire of producers to limit the decline in export prices of propylene polymers to a value less than the decline in monomer prices. In fact, we are talking about lowering prices by only EUR40-60/tonne.
December deals for homopolymer PP were agreed in the range of EUR1,125-1,180/tonne FCA, down on average by EUR60/tonne from November. Some producers still had significant restrictions on this month's shipments.
Deals for block propylene copolymers (PP block copolymers) were done in the range of EUR1,210-1,270/tonne FCA, while in November deals were done in the range of EUR1,250-1,310/tonne FCA.
MRC