Polypropylene (PP) prices surge in Europe by €70-90 per metric ton in February compared to January, according to GC Intelligence price assessments.
This increase was mainly driven by the €80/mt increase in the price of the raw material monomer, propylene.
The recovery in demand is fragile, and ongoing weakness in some sectors may limit any upside.
Nevertheless, the oversupply has eased somewhat, and buyers are finding it harder to source volumes.
The forecasts were adjusted higher compared to last month. This was mainly due to the surprise increase in prices this month and a slight improvement in market dynamics.
The rebound in demand from the lows in December which continued in February may have contributed to the reduction in supply.
This could support a rebound in prices if costs remain high or increase during the better seasonal demand of spring.