The contract price of propylene in Europe for September supplies was finally agreed at the level of EUR830 per ton, which is EUR40 per ton higher than the level of August, ICIS informed the second producer and the second consumer after the announcement on Tuesday of the initial contract price for the material by one producer and one buyer on the market.

The contract price was approved on the basis of FD NWE (with delivery to North-Western Europe).

In total, this agreement was directly confirmed by three manufacturers and two consumers, which is a sufficient configuration for the approval of the contract price, since it is considered fully agreed upon after confirmation from at least two producers (suppliers) and two consumers.

The increase in the contract price for propylene in September was expected, given the increase in oil prices in August, as well as the current balance of demand and limited supply.

Earlier it was noted that the contract price of propylene in Europe for August supplies was finally approved at the level of EUR790 per tonne, as in July.

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

According to DataScope of the company MRC, the total volume of imports of PP to Russia declined by 7% in the first seven months of this year compared to the same period in 2016 and amounted to 92.6 thousand tonnes. Reduction of external supplies occurred only for several types of polypropylene.