Polypropylene (PP) prices plunge in Europe

This week, PP prices drifted sharply lower in Europe.

An industry source in Europe informed a Polymerupdate team member, “The bearish pricing undertone in the European PP market is a result of prevalent weak macroeconomic conditions which have adversely impacted demand sentiments across key derivative segments like automotive, construction and infrastructure. A sharp fall in propylene contract values also weighed on prices.”

The source added, “An oversupply situation which was further exacerbated by a gradual rise in import cargoes continued to pressure prices lower. Furthermore, market participants opined that planned or unplanned shutdowns at plants would hardly boost the buying momentum given that supplies continued to be plentiful in the region. Producers are under a persistent pressure to offload their inventories while buyers are in a wait and watch mode and are desisting from purchasing in bulk volumes, preferring to make only need-based purchases. Market players were unsure of the direction in which the market was headed though they largely concurred that the overall outlook would remain gloomy in the short to medium term.”

In the spot markets, PP injection moulding grade prices were assessed at the Euro 1065-1075/mt FD North West Europe mark while PP block copolymer grade prices were assessed at the Euro 1115-1125/mt FD Northwest Europe levels, both tumbled by Euro (-50/mt) from the previous week.

In the contract markets, PP injection moulding grade prices were assessed at the Euro 1460-1465/mt FD NWE Germany and FD NWE France levels, both week on week sharply lower by Euro (-50/mt) while PP injection moulding grade prices were assessed at the Euro 1450-1455/mt FD NWE Italy levels, a steep fall of Euro (-50/mt) from last week. PP injection moulding grade prices were assessed at the GBP 1255-1260/mt FD NWE UK levels, a week on week decline of GBP (-40/mt).

Meanwhile, PP block copolymer grade prices were assessed at the Euro 1530-1535/mt FD NWE Germany and FD NWE France levels, both decreased by Euro (-50/mt) from the previous week, while PP block copolymer grade prices were assessed at the Euro 1520-1525/mt FD NWE Italy levels, a week on week steep fall of Euro (-50/mt). PP block copolymer grade prices were assessed at the GBP 1315-1320/mt FD NWE UK levels, a decline of GBP (-40/mt) from last week.

FCA Antwerp PP homopolymer prices were assessed at the Euro 1050-1100/mt levels, a week on week plunge of Euro (-50/-60/mt). FCA Antwerp PP copolymer prices were assessed at the Euro 1100-1130/mt levels, a sharp fall of Euro (-50/mt) from the previous week.

Upstream propylene spot prices on Thursday were assessed at the Euro 640-650/mt FD Northwest Europe levels, a week on week decrease of Euro (-20/mt).

Propylene feedstock contract price for June settled at the Euro 1050/MT FD North West Europe levels. This price represents a sharp drop of Euro 80/MT from its May settlement levels.