Home Latest News & Insights EU PP MARKET FACES CHALLENGING OUTLOOK

EU PP MARKET FACES CHALLENGING OUTLOOK

March 29, 2023
bearish market

EU PP market faces challenging outlook. European polypropylene (PP) prices experienced a slight increase in March, influenced by seasonal trends.

Suppliers managed to maintain prices in accordance with raw material costs due to reduced operating rates.

The outlook remains uncertain as the industry faces slow demand recovery, oversupply, and concerns regarding inflation, interest rates, and energy costs.

Demand in various market segments has yet to demonstrate a strong recovery.

For example, the automotive industry has shown slow progress, while the construction sector is experiencing a slump.

Uncertainty, inflation, high energy bills, and interest rates contribute to these industries’ underperformance.

The market is expected to remain well-supplied this year, as suppliers seek to balance the market and maintain prices by reducing operating rates.

The industry will likely experience minimal price changes for the remainder of the year, with no significant rebound anticipated.