This week began discussing the Middle East PP prices for shipments in September. Against the background of a serious reduction in price of oil and the fall in prices in Asia, the Middle East PP suppliers have announced serious decline in prices for the markets of the CIS countries. At the same time, companies are in no hurry to confirm the transaction, waiting for the formation of prices in Europe.

Transactions with respect to the September deliveries of propylene homopolymer (PP-homo) discussed between USD1 140-1 200 per tonne, CFR (Odessa, Novorossiysk), which is an average of USD60-80 per tonne below August levels. Some market participants have reported that there are proposals on the re-importation of the Middle East PP from China at USD1 120 per tonne, CFR.

Many companies, despite such a serious decline in prices is not in a hurry to confirm the transaction on September shipment Middle East polypropylene. This is partly due to the steady downward trend in major markets (Europe and Asia) and the desire to get even lower prices.

Some companies have reported that they intend to wait for prices from European manufacturers. The September price of propylene in Europe was agreed at EUR110 per tonne below the level of August, which suggests at least a proportional reduction in the price of polypropylene. Transactions with respect to transactions for August delivery PP-homo of Europe is in the range of EUR1 150-1240 per tonne, FCA