The December contract price of propylene in Europe was agreed at EUR100 per ton below November. Against this background, all European manufacturers announced a decrease in export prices of polypropylene (PP) for deliveries to the markets of the CIS countries in December. But price cuts are not proportional to the fall in monomer prices, according to the ICIS-MRC Price Review.

Negotiations on the December level of prices of European PP were conducted last week. All market participants state the desire of manufacturers to limit the decline in export prices of propylene polymers to a value less than the decline in the price of monomer. In fact, we are talking about lowering prices by only EUR 40-60 per ton.

Deals regarding December deliveries of PP-homo were agreed in the range of EUR1 125-1 180 per tonne, FCA, which is on average EUR 60 per tonne lower than the level of November. Some manufacturers have restrictions on deliveries in the current year.

The supply of propylene block copolymers (PP block) was in the range of EUR1 210-1 270 per tonne, FCA, whereas a month earlier the deals were at the level of EUR1 250-1 310 per tonne, FCA.