LONDON (ICIS)–The European propylene June contract reference price has been set at €630/tonne, up by €60/tonne from May.
The settlement has been directly confirmed by three producers and three consumers, one of whom is non-integrated.
Crude oil and naphtha values reversed the trend of the past couple of months and rose throughout May on the back of oil production cuts and returning demand as lockdowns started to ease.
The supply and demand picture is a little more mixed moving into June though.
Refinery constraints have been easing and are expected to continue to do so going forward, but demand in some sectors remains weak amid high inventory levels, slow run-rates and lack of export opportunities.
Polymer demand into packaging for food, hygiene and medical sectors remains healthy.
The contract reference price is fully established when a minimum of two producers and two consumers have directly confirmed.
It is agreed on a free delivered (FD) northwest Europe (NWE) basis.