Europe May propylene confirmed up €10/t at €1,150/tonne

30 April 2014 09:42 Source:ICIS News

LONDON (ICIS--The European propylene contract price for May has been fully established at €1,150/tonne, up by €10/tonne from April, following the confirmation of a second contract agreement on Wednesday.

Two major producers and two key consumers have directly confirmed the settlement, with confirmation from a third major producer pending.

The increase reflects the tight supply and demand balance which has prevailed in Europe since the start of the year as well as a slightly firmer feedstock naphtha average in April compared to March.

“There was wide consensus for it [the increase]”, one of the major settling producers said.

“A rollover was not feasible,” one of the key consumers said.

While the magnitude of the adjustment was not a surprise to most, at least one other producer was disappointed.

“It’s not enough, it should have been plus €20-30/tonne due to the shortage,” it said.

By Nel Weddle