May European propylene contract price drops
May European propylene contract
May European propylene contract price drops by EUR80 per tonne
MOSCOW – The contract price for propylene in Europe for May deliveries was finally agreed at EUR570 per tonne, which is EUR80 lower than the previous month, ICIS reported.
The contract price was approved under the terms of FD NWE (with delivery to North-West Europe).
This contract price was directly confirmed by three producers and three consumers of the material, which is the necessary configuration for approving the contract price of propylene.
Confirmation expected from fourth consumer.
Crude oil and naphtha prices continued to decline during April, but at the same time, the demand forecast is mixed. May European propylene contract
Demand in the finished goods sector, namely in the sectors of packaging, food, healthcare and medicine, is healthy, but low in the automotive industry and construction.
In general, the supply is balanced, as in some areas the reduction in operational performance at oil refineries has limited supplies.
Propylene is the main raw material for the production of polypropylene (PP).
According to ScanPlast of Market Report, in March the total volume of polypropylene production by Russian manufacturers fell to 146.6 thousand tons compared to 157.7 thousand tons a month earlier, and in mid-March SIBUR Tobolsk stopped its scheduled preventive maintenance. In general, in the first three months of this year, the total polypropylene production in the Russian Federation reached 472.9 thousand tons against 346 thousand tons a year earlier. May European propylene contract
Five out of eight manufacturers increased capacity utilization, while the main increase in operating hours was provided by a new manufacturer – ZapSibNeftekhim.
Author: Anna Larionova