The contract price of propylene in Europe for July deliveries was finally agreed at EUR910 per tonne, which is EUR80 per tonne lower than June, ICIS reported.
The contract price was approved under the terms of FD NWE (with delivery to North-West Europe).
The decline was expected due to a fall in naphtha quotations and a weakening demand and increase in the supply of material.
The contract price is fully agreed when it is directly confirmed by at least two manufacturers and two consumers.
Propylene is the main raw material component for the production of polypropylene (PP).
In May, polypropylene production in Russia rose to 135.1 thousand tons against 128 thousand tons a month earlier, and SIBUR Tobolsk, Nizhnekamskneftekhim and Stavrolen increased their capacity utilization. According to the results of January-May of the current year, the total volume of PP production reached a level of 609.1 thousand tons against 589.4 thousand tons a year earlier.