MOSCOW (MRC) -- The February contract price of propylene was settled in Europe up by EUR85/tonne from the previous month. But due to a deficit in the region, all European producers announced a greater increase in export prices of polypropylene (PP) to be shipped to the CIS markets in February, than the rise of monomer prices, according to ICIS-MRC Price report.
Negotiations on February prices of European PP began in the first days of the month. All market participants reported that European producers have gone for a significant increase in export prices for propylene polymers due to a serious deficit in the European market. In some cases, prices have increased at the level of EUR230/tonne.
For several months now, all producers in Europe have had serious export restrictions, which were largely a result of the shortage of propylene in the region. For the second month in a row, several producers do not sell PP to the markets of the CIS countries.
Deals for February shipments of homopolymer PP were done in the range of EUR1,250-1,310/tonne FCA, whereas last month's deals were done in the range of EUR1,040-1,100/tonne FCA. Deals for block copolymers of propylene (PP block copolymers) started from EUR1,270/tonne FCA and more, versus EUR1,100/tonne FCA a month earlier.
Some producers this week announced an additional increase in export prices by another EUR100/tonne compared to the previous week.
The situation with Middle Eastern PP was similar, local producers also raised their export prices under the pressure of higher crude oil prices and strong demand. Since December, from month to month, the quotas for shipments to the markets of the CIS countries have been constantly decreasing.
The deals for shipments of the Middle Eastern homopolymer PP were done in the range of USD1,380 - 1,420/tonne CIF, while a month earlier the deals were agreed in the range of USD1,280 - 1,360/tonne CIF.