Polypropylene (PP) prices down adjust in Europe

This week, PP prices edged lower in the European region.

An industry source in Europe informed a Polymerupdate team member, “PP prices have declined as a result of lackluster demand trends over the ongoing summer holiday period across Europe when a majority of buyers and converters take their plants offstream or reduce operational rates at their production facilities. Macroeconomic headwinds comprising high inflation which have adversely impacted consumer spending also contributed to the bearish undertone in the market. A persisting supply overhang has pressured sellers to offload cargoes from their warehouses at attractive price levels, even as demand continues to remain weak in Europe exerting a bearish pressure on prices. Even though European PP producers have been running their facilities at bare minimum levels, such efforts have largely failed to boost market momentum, as excess supplies have dampened the demand undertone in the region.”

The source added, “Competitive import offers are exerting a bearish pressure on sale prices in the region with a large number of European PP producers and sellers compelled to reduce their spot prices to match with the import prices in order to secure their margins and protect their market shares. Meanwhile, market participants were of the opinion that spot prices in the European and global markets alike are close to bottoming out.”

In the spot markets, PP injection moulding grade prices were assessed at the Euro 955-965/mt FD North West Europe mark, a fall of Euro (-20/mt) from the previous week. Meanwhile PP block copolymer grade prices were assessed at the Euro 1045-1055/mt FD Northwest Europe levels, steady from last week.

In the contract markets, PP injection moulding grade prices were assessed at the Euro 1320-1325/mt FD NWE Germany and FD NWE France levels, both week on week declined by Euro (-30/mt). PP injection moulding grade prices were assessed at the Euro 1310-1315/mt FD NWE Italy levels, sharply down Euro (-30/mt) from the previous week. Meanwhile, PP injection moulding grade prices were assessed at the GBP 1145-1150/mt FD NWE UK levels, a fall of GBP (-10/mt) week on week.

In the contract markets, PP block copolymer grade prices were assessed at the Euro 1390-1395/mt FD NWE Germany and FD NWE France levels, both week on week decreased by Euro (-30/mt). PP block copolymer grade prices were assessed at the Euro 1380-1385/mt FD NWE Italy levels, lower by Euro (-30/mt) from last week. Meanwhile, PP block copolymer grade prices were assessed at the GBP 1205-1210/mt FD NWE UK levels, a week on week fall of GBP (-10/mt).

FCA Antwerp PP homopolymer prices were assessed at the Euro 940-980/mt levels, a drop of Euro (-20/mt) from last week. Meanwhile FCA Antwerp PP copolymer prices were assessed at the Euro 1030-1060/mt levels, stable from the previous week.

Upstream propylene spot prices on Thursday were assessed at the Euro 535-545/mt FD Northwest Europe levels, a week on week spike of Euro (+40/mt).

Propylene feedstock contract price for July settled at the Euro 1000/MT FD North West Europe levels. This price represents a sharp fall of Euro 50/MT from its June settlement levels.