The buyer said that he agreed this price with two suppliers who also entered into a similar agreement with other buyers. So, one supplier has already confirmed this price, confirmation from other participants is expected.
The decrease in the price of propylene was expected in May amid a weaker naphtha market.
The contract price is considered fully agreed upon after confirmation from a minimum of two producers (suppliers) and by two consumers.
The contract price was approved on the basis of FD NWE (with delivery to North-Western Europe).
Propylene is the main raw material for the production of polypropylene (PP).
According to the Price Review of ICIS-MRC, in Russia in May demand for polypropylene grew from individual segments of consumption. Good demand was noted in the injection molding segment, and pipe manufacturers, in particular pressure pipes, also had a good demand. Next week, talks will begin on the June level of contract prices for Russian polypropylene. Many market participants expect a further decline in PP-homo prices, as well as prices for propylene copolymers.