Sellers of polypropylene (PP) in Europe are faced with the resistance with respect to the prices for November deliveries increasing, but they are also, in turn, are resisting all attempts buyers avoid price increases, on Monday told ICIS market players.

The November propylene contract prices have been agreed at EUR30 per tonne higher than in the previous month, and producers seek to compensate for this increase in raw material quotations, increasing its prices of PP.

Meanwhile, one customer said: “My guide gave me instructions not to accept any sort of promotions in November.”

However, this position is unlikely to lead to any results, and PP prices will be automatically raised to EUR30 per tonne.

On Monday, an increase of EUR15-25 per tonne looks quite realistic for many buyers.

Currently, the difference between quotations of monomer and polymer is at its lowest level since October 2015, however, this price difference is much greater in comparison with the end of 2014.

According to the price review ICIS-MRC, the Russian market was marked surge in buying activity last week, local processors traditionally have begun to replenish their stocks. polymer Offer from individual producers is limited, but this is not reflected in the prices.
Last week, the continued harmonization of contractual PP prices for delivery in November. Most of the manufacturers have prolonged the October price.