The contract price of propylene in Europe for May deliveries was finally agreed at EUR990 per tonne, which is EUR20 per tonne higher than in April, ICIS reported.

The contract price was approved under the terms of FD NWE (with delivery to North-West Europe).

This contract price was directly confirmed by the two producers and two consumers of the material, which is the minimum necessary configuration for the approval of the contract price of propylene.

Meanwhile, confirmation from another buyer is expected.

Quotations of raw materials – naphtha – increased in the current month, which was the main reason for the increase in the contract price of propylene, however, the excess supply of material on the market limited the growth rate of this indicator.

Earlier, it was noted that the contract price of propylene in Europe for April deliveries rose by EUR20 per tonne compared with the level of March and was EUR970 per tonne last month, FD NWE.

Propylene is the main raw material component for the production of polypropylene (PP).

According to the ICIS-MRC Price Review, negotiations on the May contract deliveries of the Russian PP started last week. At the same time, not all manufacturers have settled their prices, negotiations will continue this week. Despite the upcoming long May holidays, buying activity on the spot market was low in late April. Most of the companies did not begin to form additional reserves for the weekend period. The excess supply of propylene homopolymer (PP-homo) in the spot market persists, and it continues to exert pressure on prices. At the end of last week there was a slight decrease in prices for some sellers.