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Parliamentary question - E-002092/2017Parliamentary question
E-002092/2017

Competition in the polypropylene (PP) granule sector

Question for written answer E-002092-17
to the Commission
Rule 130
Aldo Patriciello (PPE) , Salvatore Cicu (PPE) , Raffaele Fitto (ECR) , Lara Comi (PPE) , Alberto Cirio (PPE) , Andrea Cozzolino (S&D)

Polypropylene (PP) film is produced by processing polypropylene granule, derived from the propylene monomer (C3), which, in turn, is obtained from the refining of petroleum.

The sharp drop in the price of petroleum, which began in the second quarter of 2015, has not been followed, however, by a fall in the prices of propylene monomer. The dynamics of C3 monomer prices and of the ICIS Raffia index (a benchmark for the purchase of granules for film production) is certified by official bulletins: the spread stands at around EUR 300/tonne, while in 2015 it jumped to EUR 480/tonne, reaching EUR 524/tonne in 2016 and peaking at EUR 565/tonne.

The spread grew in the second quarter of 2015 when nearly all operators in the sector declared a number of problems and plant closures due to technical problems. Subsequently, the granule available became increasingly insufficient compared to market demand and the price differential could no longer be reabsorbed.

Does the Commission not, therefore, agree that it might be appropriate to check whether, in the European polypropylene granule market, any abusive practices, abuses of dominant positions or anti-competitive arrangements might be taking place that are inhibiting free market competitiveness?