The February contract price of propylene oxide in Europe rose by EUR68 / t to EUR1,408-1,508 / t on the back of an increase in propylene feedstock, ICIS reported.
The contract price was approved on FD NWE terms (with delivery to Northwest Europe).
The contract price of propylene in Europe for February supplies was finally agreed at EUR885 per tonne, which is EUR85 per tonne higher than the level of the previous month.
The propylene oxide market is very limited in Europe due to restrictions on the supply of propylene and hence lower volumes of propylene oxide production, as well as very high demand from polyols. Production failures were also reported.
This market tension is expected to last until February. However, buyers can still get the material by contract. ICIS analysts do not expect the European propylene oxide market to return to dock-like demand levels until 2022.
Propylene is the main raw material for the production of polypropylene (PP).
According to the ICIS-MRC Price Survey, negotiations on the February contract prices of the Russian propylene homopolymer (PP-homo) have started in Russia, processors are reporting a price increase of 4,100-5,000 rubles. per ton. Some manufacturers intend to limit contract sales in February.