MOSCOW (MRC) -- The December contract price of propylene in Europe was agreed by EUR60/tonne lower from November. However, limited export quotas allowed European producers to restrict the reduction of export polypropylene (PP) prices for the CIS markets by EUR20-40/tonne, according to ICIS-MRC Price report.

 

The continuing cuts in oils prices led to a further reduction in prices of oil refining products in December. Thus, the December contract price of propylene in Europe was agreed by EUR60/tonne lower from November. At the same time, European producers said they had strong demand from the domestic market and export quotas restrictions, due to which they do not intend to reduce their PP prices proportionally to the decrease in propylene prices. Some producers, on the contrary, maintained November export prices.

 

Deals for December shipments of propylene homopolymers (homopolymer PP) to the CIS countries were negotiated in the range of EUR1,110-1,160/tonne FCA this week, down by an average of EUR20-40/tonne from November. Negotiations over propylene copolymers were held starting from EUR1,180/tonne FCA.

 

Many market participants said European PP has been the cheapest material for the past few months, and the current depreciation of the euro gave it additional advantages.