Market Dynamics
European producers cut polyolefins prices for CIS markets
Time: 2014-09-05 Source from: www.mrcplast.com
Amid a significant reduction in contract prices of ethylene and propylene, European producers had to cut export prices of polyethylene (PE) and polypropylene (PP) for September delivery in the CIS countries by EUR20-60/tonne, according to ICIS-MRC Price Report.
September contract prices for ethylene and propylene in Europe were agreed down by EUR55/tonne and EUR50/tonne respectively, compared with the August level. As a consequence, because of such a significant drop in feedstock prices, European producers had to reduce prices of polyolefins for September deliveries, including the CIS markets.
Negotiations on the price of European polyethylene and polypropylene for September delivery began on Monday, 1, September. Many market participants reported that the European producers planned to cap the September decline in prices by EUR20-40/tonne, despite the bigger drop in prices of feedstock.
Some companies have reported that they achieved price drop for September delivery more than EUR50/tonne.
In general, the price offers for September high density polyethylene (HDPE) were discussed in the range of EUR1,180-1,220/tonne FCA.
Negotiations on homopolymer PP began from EUR1,200/tonne FCA.