The October contract price of propylene in Europe was agreed at EUR10 per tonne higher than a month earlier. Against this background, all European manufacturers announced an increase in the export prices of polypropylene (PP) for supplies to the markets of the CIS countries in September, according to the Price Review ICIS-MRС.
Negotiations regarding the October level of European PP prices started at the end of last week. All market participants say that European manufacturers went on to increase the export prices of propylene polymers for shipments in the current month, but in some cases the price increase is EUR30 per ton, which is more than the increase in the cost of propylene in Europe.
Transactions regarding the October deliveries of propylene homopolymers (PP-homo) are discussed in the range of EUR1 015 -1 065 per tonne, FCA, which is EUR10 per tonne higher than September. Transactions on the supply of propylene block copolymers (PP block) were discussed in the range of EUR1 120-1 160 per tonne, FCA, which is EUR10-30 per tonne more than a month earlier.
Some manufacturers still have export restrictions, but they are not critical for most buyers. Partially, consumers cover their needs for PP through cheaper supplies from the Middle East.