The September contract price of propylene in Europe was agreed at EUR50 per tonne below the level a month earlier. Against this background, all European manufacturers announced a reduction in the export prices of polypropylene (PP) for deliveries to the markets of the CIS countries in September, according to the ICIS-MRC Price Review.
Negotiations regarding the September European PP price level started at the beginning of this week. All market participants say that European manufacturers have gone to reduce the export prices of propylene polymers for shipment in the current month, but in some cases the reduction in prices is less than the decrease in the cost of propylene in Europe.
Transactions regarding September deliveries of propylene homopolymers (PP-homo) are discussed in the range of EUR1 005 -1 055 per tonne, FCA, which is EUR30-50 per tonne lower than in August. Transactions on the supply of propylene block copolymers (PP-block) were discussed in the range of EUR1 090-1 130 per tonne, FCA, which is also EUR30-50 per tonne lower than a month earlier.
Some manufacturers have export restrictions, but they are not critical for most buyers. Partially, consumers cover their needs for PP through supplies from the Middle East.