The contract price of propylene in Europe for December deliveries was finally agreed at EUR845 per tonne, which is EUR5 per tonne higher than the level of the previous month, ICIS reported.

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

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

Negotiations were difficult, given conflicting factors: negotiating the contract price of the material was subject to the price pressures faced by suppliers, and also took into account the low level of demand in the downstream market.

It was previously noted that the November contract price of propylene in Europe fell by EUR30 per tonne compared with October and amounted to EUR840 per tonne, 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 December contract prices of Russian PP started in the last week of November. One of the sellers raised the contract prices of propylene homopolymers (PP-homo) contrary to the situation on the spot market. In the propylene copolymer segment, contract prices were extended.