The June contract price of propylene in Europe was agreed at EUR40 per tonne lower than the price of May. Against this background, European producers were forced to reduce the export prices of polypropylene (PP) in the current month for CIS markets, although export restrictions remain, according to the ICIS-MRC Price Review.

Negotiations on the June level of European PP prices began this week, many market participants state that European producers have gone for a greater reduction in export prices of PPs, than the price of propylene in Europe has been reduced. At the same time, export restrictions remain, some manufacturers do not plan to ship to the CIS in the current month.

Transactions in respect of the June deliveries of propylene homopolymer (PP homo) are in the range EUR1-100-1,140 per tonne, FCA, whereas the month before deals were in the range EUR1,140-1,200 per tonne, FCA. A part of producers still have export restrictions, the biggest drawback is in the PP-homo segment of raffia.

Transactions regarding the supply of propylene block copolymers (PP block) are discussed in the EUR1 155-1 220 per tonne range, FCA. Negotiations on the June shipments of the propylene (PP) random copolymers are conducted within EUR1 200-1 260 per tonne, FCA.