This week, PP prices dropped in the European region.

An industry source in Europe informed a Polymerupdate team member, “The market length which was retained by the polypropylene market in Europe has been compounded by a rise in influx of competitively priced imports from overseas suppliers, prompting market players to envision a bleak outlook for the remaining part of the year. Macroeconomic headwinds comprising high inflation which have adversely impacted consumer spending also contributed to the bearish undertone in the market.”

The source added, “Buying momentum from derivative sectors, chiefly packaging and consumer goods, has weakened considerably as a large number of buyers are focused on maintaining minimal inventories and procuring material in need-based quantities. Even though producers have lowered production runs at their plants to deal with weak demand fundamentals, a persistently dampened market outlook has implied that inventories continue to pile at their warehouses which they are finding difficult to offload. With rising expectations of a decline in the propylene monthly contract price settlement for June 2023, a majority of market players are expected to defer their purchase decisions in anticipation of a further price fall.”

In the spot markets, PP injection moulding grade prices were assessed at the Euro 1165-1175/mt FD North West Europe mark while PP block copolymer grade prices were assessed at the Euro 1215-1225/mt FD Northwest Europe levels, both lower by Euro (-10/mt) from the previous week.

In the contract markets, PP injection moulding grade prices were assessed at the Euro 1510-1515/mt FD NWE Germany and FD NWE France levels, both down week on week by Euro (-5/mt) while PP injection moulding grade prices were assessed at the Euro 1505-1510/mt FD NWE Italy levels, a week on week fall of Euro (-5/mt). PP injection moulding grade prices were assessed at the GBP 1315-1320/mt FD NWE UK levels, a decreased of Euro (-5/mt) from last week. Meanwhile, PP block copolymer grade prices were assessed at the Euro 1580-1585/mt FD NWE Germany and FD NWE France levels, both week on week lower by Euro (-20/mt) while PP block copolymer grade prices were assessed at the Euro 1570-1575/mt FD NWE Italy levels, down Euro (-20/mt) from the previous week. PP block copolymer grade prices were assessed at the GBP 1370-1375/mt FD NWE UK levels, a week on week drop of GBP (-15/mt).

FCA Antwerp PP homopolymer prices were assessed at the Euro 1150-1210/mt levels while FCA Antwerp PP copolymer prices were assessed at the Euro 1200-1230/mt levels, both declined by Euro (-10/mt) from the previous week.

Upstream propylene spot prices on Thursday were assessed at the Euro 715-725/mt FD Northwest Europe levels, a sharp week on week decrease of Euro (-45/mt).

Propylene feedstock contract price for May settled at the Euro 1130/MT FD North West Europe levels. This price represents a drop of Euro 15/MT from its April settlement levels.