The December contract price for propylene in Europe was agreed at EUR30 per ton lower than the price of November. As a consequence, virtually all European producers announced a reduction in export prices of polypropylene (PP) in the current month for the markets of the CIS countries, according to a price review ICIS-MRC.

Negotiations on the December level of prices for European PP began in the end of last week and continued this week. Many market participants have concluded that European manufacturers have gone to lower export prices for polypropylene deliveries in December. At the same time some producers reduction comes to EUR40 per tonne.

This week the December transaction concerning the supply of propylene homopolymer (PP-homo) are discussed in a fairly large range EUR910-1 010 per tonne, FCA, while the previous month deals were in the range EUR950-1 040 per tonne, FCA.

Like last month, most of the manufacturers in October retained restrictions on the shipment of PP-Homo. Some manufacturers state that shipments to the CIS countries they will only be available in the third week of December, in fact just before the New Year.

Transactions regarding the supply of block copolymers of propylene (PP-block) are discussed in the range of EUR1 010-1 110 per tonne, FCA. Negotiations for December shipments stat-propylene copolymer (PP-random) are conducted within EUR1 070-1 140 per tonne, FCA.