Polypropylene (PP) prices rise in Europe, with early projections suggesting a hike of €80-100/mt in February versus January.
The driving factors behind this increase are the rising cost of raw materials, namely propylene.
An increase in demand from the lows recorded in December added further support.
Despite the current overall sluggish activity in the downstream sector, a lower production rate combined better demand should help to support the upward pressure.
Buyers have already reported that sourcing adequate volumes of polypropylene has become slightly more challenging.
Additionally, seasonal factors are also expected to contribute to the rise in prices. February and the rest of the quarter will most likely see a seasonal increase in demand.
In conclusion, the early indications of a price increase for polypropylene in Europe are the result of a combination of factors. These include rising raw material costs, increased demand, lower production rates, and seasonal factors.