Spot prices of ethylene and propylene fell in Europe on the back of an increase in supply, ICIS reports citing market participants.

While the prices of propylene and ethylene remained stable in Europe from the middle of October.

Last week about 14 thousand tons of ethylene was sold, with 10 thousand tons of them intended for delivery in December. Also, just over 14,000 tons of propylene were sold last week, of which 9,000 tons are destined for delivery in December.

According to market sources, cracking plants in Europe operate with high capacity utilization. Sources said that the main demand for ethylene and propylene remains quite high. Sources note an uptrend in crude oil and naphtha quotations.

Ethylene and propylene are the raw materials for the production of polyethylene (PE) and polypropylene (PP).

According to the Price Review of ICIS-MRC, in Russia the buying activity in the local market is low, the supply of polyethylene increased significantly in November, and processors are slow to replenish their inventories. In addition, the demand for finished products began to decline. As a result of last week, a further decline in prices, in particular, film LDPE and LDL.
Purchasing activity in the local PP market is low, but the demand is stable. Local processors continue to gradually replenish their inventories. At the same time, some companies limit their current purchases of PP in the hope of further price reductions.