The July contract price of propylene in Europe was agreed at EUR 80 per ton cheaper than a month earlier. Against this background, all European manufacturers announced a proportional reduction in the export prices of polypropylene (PP) for deliveries to the markets of the CIS countries in July, according to the ICIS-MRС Price Review.
Negotiations on the July level of prices of European PP started this week. All market participants state that European manufacturers are forced to go to a significant decrease in export prices of polymers of propylene for shipments in July under the pressure to reduce the cost of the main raw materials in the region.
Deals regarding the July supply of propylene homopolymers (PP-homo) are discussed in the range of EUR1,070-1,120 per tonne, FCA, while the June deals were agreed in the range of EUR1,150-1,200 per tonne, FCA. Deals on the supply of propylene block copolymers (PP block) are negotiated in the range of EUR1 140-1 180 per tonne, FCA.
The demand for European polypropylenes on the part of consumers from the CIS countries in May-June was significantly reduced due to high export prices. But a significant reduction in July prices may change the situation with the demand for a European polymer for the better.