Despite rollover of the propylene reference contract beforehand, European PP prices crumbled in May 2017. Globally, the propylene chains weakened, including polymers. Also, more goods than before were available from European production once again.
By exercising tactical restraint, buyers also brought additional pressure to bear on prices. The copolymer grades, which have risen at disproportionate rates almost continuously since last autumn, underwent a similar fall. Many consider that the gap versus the homopolymer grades calls for correction.
More extensive reductions are likely to have taken place in June. The propylene reference contract mirrored the decline in the naphtha level since mid-April. And this will have a direct impact on polymers too.
Since tactical options are open to purchasers, due to import offerings at yet non-fixed prices, the falls could even surpass the drop in the reference contract for some grades.