Europe PP prices increase by €90/tonne and more in January for CIS markets

MOSCOW (MRC)–European producers announced an increase in export prices of polypropylene (PP) to be shipped to the CIS markets in January at levels above the propylene contract cost increase according to ICIS-MRC Price report.

The January contract price of propylene was settled in Europe up by €65/tonne from the previous month, but all CIS market participants reported that European PP producers had gone for a significant increase in export prices for propylene polymers.

Some producers adjusted their export prices twice in the first two weeks of January, with price growth recorded at €90/tonne, and up to €160/tonne in some cases.

All producers in Europe have serious export restrictions, and some do not even plan to sell PP to CIS countries this month. Deals for January shipments of homopolymer PP were done in the range of €1,040-1,100/tonne FCA (free carrier), whereas last month’s deals were done in the range of €950-1,000/tonne FCA.

Deals for PP block copolymers were done in the range of €1,100-1,190/tonne FCA, versus €970-1,030/tonne FCA a month earlier. Middle East producers have also started raising export prices under the pressure of rising oil prices.

Quotas for shipments to the markets of the CIS countries have been reduced in comparison with December. The price of the Middle Eastern PP is under serious pressure from the growth of sea freight.

The deals for January shipments of Middle Eastern homopolymer PP were in the range of $1,280 – 1,360/tonne CIF (cost, insurance, freight). Some sellers have already started negotiating deals for February shipments, and prices are reaching $1,400/tonne CIF.

MRC, a partner of ICIS, produces polymers news and pricing reports from Russia, Ukraine, Belarus, Uzbekistan and Kazakhstan.