The contract price of propylene in Europe for April deliveries was finally agreed at the level of EUR970 per ton, which is EUR20 per ton higher than the level of March, several participants in the negotiation process on contract prices reported to ICIS.

The contract price was approved under the terms of FD NWE (with delivery to North-West Europe).

This contract price was directly confirmed by the two producers and two consumers of the material, which is the minimum necessary configuration for the approval of the contract price of propylene.

Meanwhile, confirmation from another buyer is expected.

Quotations of raw materials – naphtha – rose this month, which was the main reason for the increase in the contract price of propylene.

The supply of material continues to be excessive, but a number of unplanned production stops and an earlier than expected start of maintenance at a key European refinery helped reduce the excess propylene on the market.

Earlier, it was noted that the contract price of propylene in Europe for March deliveries increased by EUR25 per tonne compared with February and amounted to EUR950 per tonne last month, FD NWE.

Propylene is the main raw material component for the production of polypropylene (PP).

According to the ICIS-MRC Price Review, last week it was fairly quiet on the Russian market of PP, many companies have already closed all their March supply deals a week earlier. The market has stopped waiting for approval of deals for April deliveries. The supply of polypropylene for a month was redundant with a few exceptions, but at the same time, some of the sellers had already sold all their March reserves of PP in March. Last week started negotiations on the April contract prices of the Russian PP. On propylene homopolymer (PP-homo), some buyers report price reductions, while in the stat-propylene copolymer segment (PP-random) one of the manufacturers raised the price by 3 thousand rubles. for ton on April deliveries.