Manufacturers of polypropylene (PP) in Europe, plans to raise prices by May EUR30 to EUR50 per ton on the background of growth in demand, according to ICIS.

Although the May propylene contract price in Europe was agreed at EUR15 per tonne higher than in April, manufacturers do not intend to be limited to a proportional increase in prices. Stocks of many buyers came to an end and they have to pay a higher price for prompt delivery of the material.

One of the producers of PP said that he intends to raise PP prices for delivery in May EUR30-35 per ton, adding that customers bought more than usual this month.

Nevertheless, given falling spot prices of PP in Asia and the great difference between the increase in the price of propylene and PP in Europe, market players predict a decline in prices of PP in Europe.

As reported earlier MRC, spot prices of PP in Asia in May, are under pressure to low demand and the opening of new facilities in the region. Permanent market volatility PP and oil futures makes buyers of finished goods sit on the fence.

On May transaction concerning the supply of propylene homopolymer last week (homo-PP) for the CIS countries were discussed in a fairly large range EUR970-1 065 per tonne, FCA, which is EUR 15 per tonne higher than the price level in April. Transactions regarding the supply of block copolymers of propylene (PP-block) are discussed in the range of EUR1 070 – 1 135 per tonne, FCA. Negotiations for May shipments stat-propylene copolymer (PP-random) are conducted within EUR1 110-1 175 per tonne, FCA.