European propylene prices fell to a 2014 low this week as a downturn in downstream demand played on market sentiment.
Polymer grade propylene prices fell to Eur1,069/mt ($1,447/mt) FD NWE, down Eur12/mt week on week.
"Propylene demand has dropped off and buyers are pushing for a higher discount [than 9% to the monthly contract price]," a market source said. "It is a very quiet month."
A significant reason for this was due to weaker downstream demand.
European polypropylene spot prices fell Wednesday to Eur1,330/mt, down Eur22.5/mt, following caution in trading activity.
"People are waiting for August. If they need to buy, they pay a little bit more, but customers already know its tight, [so are waiting]," one trader said.
This was added to by a cessation in the ascent of acrylonitrile prices for the first time since June 10, which closed Tuesday at $1,925/mt CIF Med.
The fall in prices was also attributed to a declining energy complex. Naphtha was assessed at $932.25 Thursday, a low since June 6.
Despite the market being described as quiet this week, one deal was reported at August monthly contract price less 9% CIF NWE, for 2 kt and for August delivery. The buyer confirmed.
