Ethylene producers in Europe managed to push the increased cost of feedstock naphtha into the newly agreed contract price of material in Europe, despite very bearish derivative markets.
With the market balanced to tight there are mixed views about whether the contract price increased will be passed downstream in coming weeks.
Propylene market activity is expected to pick up this week after the contract price was settled Wednesday at Eur927/mt (about $1,138/mt), up Eur10/mt from March, with spot volumes mostly heard pegged at a discount to the contract price.
The propylene outlook for April was not as bullish as expected by market participants, with no production problems reported in the market. But downstream demand remained solid due to the seasonal pick-up in volumes.

The European butadiene market remains bullish, following a Eur75/mt increase in the monthly contract price for April to Eur950/mt FD NWE.
With strikes on the French rail network immediately following the Easter break, market participants are looking to minimize any impact, with alternative forms of transport being sought in some cases.