Platts ethylene and propylene indicators for August were assessed at clear declines from July following lower upstream naphtha prices.
Platts ethylene indicator for August was assessed Wednesday at Eur928.5/mt ($1,024/mt) FD NWE, down Eur16.5 from the industry settlement for July.
The propylene indicator was assessed at Eur646.5/mt, Eur23.5 below its industry settlement for July.
Naphtha, the primary feedstock for both ethylene and propylene production, has fallen 10% since the olefins last settled. Naphtha's spot price for cargoes was assessed at $380.75/mt CIF NWE Wednesday.
The change in naphtha is the primary cause of lower PEI and PPI values, which were also supported by falls in ethylene and propylene spot prices.
Ethylenes's spot price was assessed at Eur906/mt FD NWE Wednesday for delivery in 3-30 days, falling Eur11 from its last settlement.
Propylene's spot price showed more pronounced declines this month, assessed Wednesday at Eur641/mt FD NWE for delivery 3-30 days forward, down Eur22.5 from its last settlement.
Spot propylene prices for delivery in July has kept its strength following supply disruptions in June, which left the market tight. However, prices are expected to decline in August following a fall in demand from major producers of derivative polypropylene.
European polypropylene contract prices were assessed at Eur1,130/mt FD NWE Wednesday, marking a fall of Eur60 in July as converters destock ahead of summer holidays.
Likewise, bearish sentiment is developing on ethylene following major derivative polyethylene, which has seen LDPE contract prices fall Eur90 in July.
