The May contract price of propylene in Europe was agreed at EUR80 per tonne below the level a month earlier. Nevertheless, for the second month in a row, European manufacturers do not make a proportional reduction in the export prices of polypropylene (PP) for deliveries to the markets of the CIS countries, according to the ICIS-MRС Price Review.
Negotiations regarding the May level of European PP prices started at the end of last week. All market participants say that European manufacturers went on to further reduce the export prices of propylene polymers for shipments in the current month, but the price reduction does not exceed EUR70 per ton, while propylene fell by EUR80 per ton in Europe.
Transactions regarding the May deliveries of propylene homopolymers (PP-homo) were discussed in the range of EUR800 – 860 per tonne, FCA, which is on average EUR40 per tonne lower than in April. Transactions on the supply of propylene block copolymers (PP-block) were discussed in the range of EUR880-920 per tonne, FCA, which is EUR60-70 per tonne lower than a month earlier.
According to market participants, European manufacturers do not have any significant restrictions on May shipments of polypropylene. Conversely, due to quarantine restrictions in a number of countries, the demand for polypropylene significantly decreased in April – May.