The contract price of propylene in Europe for November deliveries was finally agreed at EUR720 per tonne, which is in line with the previous month’s level, ICIS reported.

The contract price was approved on FD NWE terms (delivery to Northwest Europe).

This contract price has been directly confirmed by three producers and four consumers of the material, which is sufficient configuration required to approve the contract price for propylene. Meanwhile, confirmation from another customer is pending.

The cost of crude – crude naphtha – remained slightly higher in October on average than in the previous month, but recently it has been under pressure from declining crude oil quotes due to repeated tightening of quarantine measures across Europe.

Propylene demand and supply in Europe as a whole showed little change in October compared to the previous month, but the difference between brands and regions remains.

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

According to the ICIS-MRC Price Survey, there was a surge in PP demand in Russia last week, with many converters starting negotiations for November deliveries of material. Some converters intend to reduce PP purchases in November, but even so, demand is expected to be at a good level.