Polypropylene (PP) prices in Europe are falling against the backdrop of falling contract prices of propylene raw materials by EUR100 per ton, ICIS reports with reference to market participants.

Many buyers are waiting for how pricing will develop, but at the moment it seems likely that the difference between the price of the monomer and the polymer will increase. Currently, the price offers of PP decreased by EUR50-60 per ton.

The situation is not entirely clear, since some buyers are still arguing about prices for 2019. The expectation that the supply of PP in the coming years will be limited is not always confirmed by buyers, some of whom said that they managed to buy goods on better conditions than in 2018.

Prices for contract deliveries of PP in Europe will be agreed in the coming days.

Earlier it was reported that the contract price of propylene in Europe for December deliveries was finally agreed at the level of EUR960 per tonne, which is EUR100 per tonne lower than the level of November.

According to the ICIS-MRC Price Review, last week negotiations on the December contract prices of PP started in Russia. Expected polypropylene prices for some manufacturers went up, but not as much as in November.