Initial Europe June propylene falls €40/tonne to €1,205/tonne

25 May 2011 10:24  [Source: ICIS news]

LONDON (ICIS)--An initial European propylene (C3) contract price for June has settled at €1,205/tonne ($1,697/tonne), down €40/tonne from May, because of weaker upstream crude oil and naphtha markets and a softer downstream outlook, a major integrated consumer said on Wednesday.

The settlement, which was between the consumer and one of its suppliers, has been fully confirmed.

A second major producer and a key non-integrated consumer have since followed the initial settlement.

The €40/tonne decrease from the May contract price, which was largely in line with market expectations, ends the seven-month run of rising propylene prices.

However, there is some feeling in the market that the decrease could have been more.

“In the light of yesterday’s [ethylene contract] announcement, our opportunities [for a greater decrease] were limited,” the key non-integrated consumer said.

“Feedstock costs would have allowed for a greater decrease on both ethylene and propylene,” the consumer added.

The June ethylene contract settled on 24 May at €1,185/tonne, down by €45/tonne from May.

($1 = €0.71)

For more on propylene and ethylene, visit ICIS chemical intelligence

By: Nel Weddle
+44 20 8652 3214

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