The contract price of propylene in Europe for January deliveries was finally agreed at EUR845 per ton, which corresponds to 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.

Meanwhile, confirmation is expected from another consumer and supplier.

The prices of raw materials – naphtha – for the production of propylene increased slightly in December compared with November on average by EUR6 per ton. But some uncertainty about the demand for derivative products and the ongoing situation with a small excess of supply offset a small increase in commodity prices.

It was previously noted that the December contract price of propylene in Europe rose by EUR5 per tonne compared with November and amounted to EUR845 per tonne, FD NWE.

Propylene is the main raw material component for the production of polypropylene (PP).