Polypropylene (PP) prices suffer a triple-digit decrease in Europe in January versus December, according to GC Intelligence assessments.
Current prices have now reached levels considerably lower than the peaks at €2000/mt seen in early 2022.
During last year prices have registered rather steep decreases, losing almost €1000/mt on some accounts.
The factors placing pressure on prices include competitive imports, poor economic conditions, and high energy bills further squeezing household budgets.
The lower price, however, eased the pressure from imports. But on the other hand, a rebound in the value of the Euro against the US dollar recently countered this trend.
The lower prices for the most part appear to have failed to boost demand. Buyers amid much uncertainty prefer to wait to have a clear idea on market conditions before increasing inventories from the lows in December.
While seasonal trends should support increases during the first half, poor market conditions will probably limit any upside.
Nonetheless, better economic data and lower inflation raised hopes that Europe will a deep recession. As such, a rebound in PP prices while still unlikely is plausible in the second half of the year.