But with supply decreasing, the pressure in now to the upside.
PP prices rolled over in November from October for most market participants, according to GC Intelligence market analysis.
Sellers tried to gain some margins and push for increases. But buyers were firm to keep prices in line with the monomer propylene in November.
Polypropylene (PP) contract prices in Europe in November were around the €900/mt DDP for homopolymer grades. And were closer to €1,000/mt for copolymer grades.
As is often the case in the polymer markets, not all buyers were paying the same prices. While some were lower, others were much higher, up to €100/mt higher. But they also by and large did not see much change in PP prices in November.
PP prices rolled over in November because while demand was strong and recovering since the summer, there was plenty of supply. A few market participants noted good availability also from Asia.
But since the middle of November, the PP market in Europe seems to have turned from oversupply to shortage.
One reason for this was good demand across many market segments, such as automotive, appliances, and packaging.
The lower imports from Asia also helped to decrease supply, according to some market sources.
The shortage caused what looks like a rather sharp change of direction in spot prices, with offers €70/mt higher than in early November. Contract buyers will most certainly soon face a similar uplift in offers.