The April contract price for propylene in Europe was agreed at EURO 60 per ton higher than in March. Against this background, many European manufacturers have announced a substantial increase in the April export price of polypropylene (PP) for the markets of the CIS countries, according to a price review ICIS-MRC.
Negotiations on the price level in April European PP began on Monday. Many market participants have concluded that in most cases, local manufacturers have gone to a serious increase in the export price of polypropylene, propylene than the growth rates. This is an increase of EUR70 per ton price.
This week, the April transaction concerning the supply of propylene homopolymer (PP-homo) were discussed in a fairly large range EUR950-1,050 per tonne, FCA, which is EUR 70 per tonne higher than the price level in March. Some manufacturers have stated that they have not in the current month of export quotas PP-homo raffia grade.
Transactions regarding the supply of block copolymers of propylene (PP-block) are discussed in the range of EUR1 070 – 1 120 per tonne, FCA. Negotiations for April shipments stat-propylene copolymer (PP-random) are conducted within EUR1 110-1 160 per tonne, FCA.
Some market participants have concluded that the current situation in the European polypropylene market resembles last year’s trend. So, since March last year, began the dynamic growth of prices in Europe rose in price when the polypropylene to EUR100 per tonne per month, higher prices, and stopped only in June (EUR1 390-1 440 per tonne, FCA). The increase in prices in March – June 2015 was caused by a shortage of polypropylene, which was due to planned and unplanned stops of European manufacturers, and also was enhanced stopping power from some Middle East producers.
In 2016, during the scheduled stops on the active prevention of European manufacturers is scheduled for March – May.