MOSCOW (MRC) -- The January contract price for propylene in Europe was agreed by EUR120/tonne below the level of December. However, European producers did not reduce proportionally their export polypropylene (PP) prices for the CIS markets, according to ICIS-MRC Price report.

 

Negotiations over January prices of European PP began last week and continued this week. Many market participants said they had managed to achieve a EUR90-100/tonne reduction from December in January prices. However, PP producers did not reduce propylene prices proportionally.

 

Deals for January shipments of propylene homopolymers (homopolymer PP) to the CIS markets have been negotiated in the range of EUR1,010-1,070/tonne FCA this week, down by an average of EUR90-100/tonne from December. Some market participants said they had received offer prices below EUR1,000/tonne, but this fact has not been confirmed so far.

 

Negotiations over shipments of propylene copolymers started from EUR1,080/tonne FCA.

 

The record weakening of the euro against the dollar over the last nine years only enhances the effect of the January fall in European producers" export prices.