PP prices in EU edge up in February. Polypropylene (PP) prices in Europe have started to edge upwards for several market participants against the backdrop of languishing demand.
However, despite initial attempts by sellers to implement substantial hikes on many accounts, understood to be around €200/MT, resistance from buyers has led to more moderated increases. Some settled at an increase of approximately €150/MT.
The price movements are not uniform across the board, revealing a complex landscape where the extent of the increase seems to be significantly influenced by the initial pricing baseline.
Accounts that previously enjoyed lower rates are now facing more substantial hikes, while those at the higher end of the price spectrum are seeing their prices roll over.
The catalyst for this upward price trajectory seems to be a reduction in the competitiveness of imports, exacerbated by longer delivery times and a surge in freight costs, adding an additional €200/MT to the price of imported PP.
This shift has made domestic offerings more appealing, albeit reluctantly accepted by buyers due to the tepid demand in downstream markets.
The ongoing economic doldrums have dampened enthusiasm across industries, keeping demand for PP subdued.
Furthermore, a strategic destocking by many suppliers towards the end of the previous year allowed many buyers to capitalize on lower prices, positioning them comfortably to adopt a ‘wait and see’ approach in current price negotiations.