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Polypropylene (PP) prices plunge to new lows in September after posting once again triple-digit decreases, according to GC Intelligence price assessments.

Market participatns noted decreases of around €100-140/mt, with homopolymer prices reaching below €1300/mt for many buyers.

The recent slump in prices has widened the price range between accounts to as much as €500/mt.

Market feedback suggests demand is still suffering from inflation and energy prices diverting consumption away from downstream products.

Moreover, demand also slowing in other regions, such as Asia, has increased imports to Europe.

Domestic suppliers are trying to stop the continuous decreases in prices by lowering operating rates and implementing energy surcharges, according to several buyers.

But with most buyers seeing customers cancelling orders, inventoeris are reaching capacity.

While a price rebound is a probable scenario next month, it is less likely than rollovers or indeed further decreases.

decrease graph

European PP spot prices posted big decreases in August versus July, according to the latest assessments by GC Intelligence.

In August prices decreased by €190/mt.

Several factors were contributing to the ongoing decreases in polypropylene (PP) prices in Europe.

First, the fall was related to the slowing demand due to the negative impact of energy prices on consumption.

Second, seasonal slowdowns were made worse by buyers waiting amid falling prices to get a better picture in September.

What is more, competitive imports and especially lower exports because of the firm prices in Europe weaked fundamentals further.

Europe’s loss of competitiveness along the entire value chain because of rising energy costs continued to get worse.

With the war continuing and an energy crisis and recession looming in Europe, downside pressure should persist into next year.


EU consumer confidence reaches the lowest ever recorded level in July, according to the latest data from the European Commission.

The new numbers show a decrease of 3 percentage points for the EU and 3.2 percentage points for the Euro Area.

The new levels surpass the lowest point reached during the beginning of the pandemic, raising fears of a major economic contraction.

The polymer industry has been feeling a considerable pressure on demand which is to do with a multitude of reasons.

But this latest reading reinforces the view that consumer jitters over inflation, war, and a looming energy crisis are additional major factors slowing down demand for polymers.

car track

Teknor Apex replaces PA66 GF (glass filled) materilas with polypropylene GF for AdBlue Tank Cover, according to a recent communication.

The company says the replacement results in several processing advantages.

Teknor Apex Germany has developend glass-filled engineering PP. The aim is to replace PA66 GF and PA6 GF with PP GF.

The company has replaced PA GF with modified PP for several applications. One example is replacement of Adblue Tank Cover for Mercedes, replacing PA66 GF30 with PP GF45.

Teknor Apex is a privately owned custom compounder. The company has nine U.S. locations, and operations in Belgium, Singapore, Germany, and China.

falling trend

Polymer markets continued to weaken substantially in July in Europe on the back of falling demand.

This was making price negotiations difficult as many producers continued to face increasing costs.

Demand for most polymers has been getting weaker since the beginning of the second quarter.

Activity has remained soft in automotive but has recently started to fall in other markets. Some of these include appliances and even construction.

The decrease in demand is attributed to many factors. Some of these include supply chain disruptions, seasonality, and high raw material prices. But most probably also inflationary pressures.

This weakness will most probably continue for the rest of the summer, and likely for the rest of the year.

In some markets, the fall in demand has been rather drastic, resulting in players having to stop production lines.

Polypropylene (PP) and Acrylonitrile Butadiene Styrene (ABS) are some of the worst-hit markets, also because of competitive imports.

With the relentless increases in energy prices, Europe continues to lose competitiveness across entire supply chains, which is probably weakening demand further.

Meanwhile, during this time of the year activity slows down because of the summer, and this has certainly accentuated the fall in demand in some sectors.

There were markets that were still performing relatively well, such as electrical and electronics and packaging. However, this was not enough to offset the losses in other markets.

As demand continues to weaken amid rising inflation, the situation could become much worse for all players during the winter when there is a greater risk of a spike in energy costs.

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