The February contract price for propylene in Europe was agreed at EUR60 per tonne below January levels. Many European manufacturers have announced a significant reduction in the export price of polypropylene (PP) for the markets of the CIS countries than the decline in monomer prices, according to a price review ICIS-MRC.

Negotiations on the February price level for European PP began on Monday. Many market participants have concluded that in many cases local producers went to the decline in export prices for polypropylene EUR100-120 per ton, which is substantially greater than the decline in monomer prices. One of the producers adjusted their prices to EUR290 per ton, compared with the level at the beginning of January.

This week the February transaction concerning the supply of propylene homopolymer (PP-homo) discussed in EUR940-980 range per tonne, FCA, while a month earlier the deal agreed upon in the range of EUR1 050-1 100 per tonne, FCA. One of the producers lowered their prices to the level of EUR880 per tonne, FCA. As some market participants pointed out by some manufacturers have a time limit in terms of shipments. But in general problems with the presence of the polypropylene is not marked. Transactions on

tnositelno supply of propylene block copolymers (PP-block) in the range discussed EUR1 000 – 1050 per ton, FCA. Negotiations for January shipments stat-propylene copolymer (PP-random) are conducted within EUR1 100-1 150 per tonne, FCA.

Some market participants noted the similarity of the situation last year. In February 2015, the European manufacturers have also gone to a serious decline in export prices of PP, in some cases, the price reached the level of EUR800 per tonne, FCA. And since March of last year I began the dynamic growth of prices, rose in price when the PP to EUR100 per tonne per month, higher prices, and stopped only in June (EUR 1 390-1 440 per tonne, FCA).

In 2015, the dynamic growth of prices in March – June was due to shortage of polypropylene, which was due to planned and unplanned stops of European manufacturers, and also was enhanced stopping power from some Middle East producers.