November contract price of propylene in Europe was agreed down EUR90/tonne below the level of the October. Nevertheless, despite such a significant decrease in the feedstock price, European producers intended to cap the decline in export prices of polypropylene (PP) for CIS markets by the level of EUR30-60/tonne , according to ICIS-MRC Price Report.

 

Serious drop in oil prices led to a similar decrease in the prices of petroleum products, in particular, November propylene contract price in Europe was agreed down EUR90/tonne below the October level. European producers, in their turn, said that they had a strong demand in the domestic market and the export quotas restrictions. In this regard, they did not intend to go on a proportional price reduction of polypropylene.

 

Last week deals for November homopolymer PP for CIS markets were discussed in the range of EUR1,130-1,190/tonne, FCA, down on average of EUR30-60/tonne below the level of the October. Negotiations on the propylene copolymers supply started from the level of EUR1,200/tonne FCA.

 

Many market participants said the European PP was the cheapest at the moment. Speaking about Middle Eastern producers, their price offers for November PP shipments were not less than USD1,500/tonne CFR.