MOSCOW (MRC) - Suppliers of Middle Eastern polypropylene (PP) have announced further price reductions for the CIS markets. Price offers for September PP shipment were reduced by USD60-80/tonne compared to the level of August, according to ICIS-MRC Price Report.
Negotiations for September delivery of Middle Eastern PP have begun this week. Because of a serious reduction in price of oil and the fall in PP prices in Asia, suppliers of Middle Eastern PP announced a significant decline in prices for the markets of the CIS countries.
At the same time, companies were in no hurry to confirm the deals, waiting for the price settlement in Europe.
Deals for September deliveries of homopolymer PP were discussed in the range of USD1,140-1,200/tonne CFR (Odessa, Novorossiysk), on average down by USD60-80/tonne from the August level.
Some market participants have reported that there were offers for the re-importation of the Middle Eastern PP from China at USD1,120/tonne CFR. Many companies, despite such a serious decline in prices were not in a hurry to confirm the deals for September shipment of Middle Eastern PP. This is partly because of the steady downward trend in major markets (Europe and Asia) and the desire to get even lower prices.
Some companies have reported that they intend to wait for prices from European producers. September price of propylene in Europe was agreed down EUR110/tonne from the level of August, which suggests at least a proportional reduction in the price of polypropylene. Deals for European homopolymer PP in August were done in the range of EUR1,150-1,240/tonne FCA.
MRC