Home News PP Prices In November Are Increasing In Europe

PP Prices In November Are Increasing In Europe

November 13, 2020
The picture has changed substantially during the past few days, from a well balanced market and stable prices to tight availability and increasing prices.

PP prices in November are increasing in Europe by up to €70/mt on the back of a tighter market, according to GC Intelligence market analysis.

The European polypropylene (PP) market has been well balanced with good availability up until recently. However, this week market feedback suggests a much tighter market and higher spot numbers.

PP prices in Europe have been relatively stable since the summer. While many polymers saw prices increase, PP prices were stable. But this now seems to have changed.

As such, it is likely that sellers will succeed to implement higher prices in November negotiations.

Some indications suggest that spot prices are increasing between €30-70/mt.

The reason for the tightening market is good demand, but especially tighter supply, driven by Asian demand.

Therefore, it seems that finally PP prices in November are increasing in Europe in line with other polymers.

Current demand is healthy due to a recovery and persistent good level of activity in many market segments, including packaging and even automotive.

However, it is possible that the current trend could revert as demand could slow down because of the lockdowns. As such, more rollovers will follow.

Moreover, stock building could be part of the current increase in demand and therefore could also potentially slow down.

Nevertheless, most likely if there is a retreat it will happen in December.

It is true that the pandemic has increased uncertainty and volatility. But in the short term, price increases on PP seem almost inevitable in November.