Pressures fuelling oversupply and increasing costs are abating in December. For example, as prices have fallen considerably, signs are emerging of an ease in import volumes.
However, with demand suffering, market conditions for most players remain challenging.
There were some production issues and lowering of production rates, which helped avoid severe oversupply but failed to support suppliers to widen margins given the rather depressed demand.
What is more, the contraction in trade this year has added availability as the increase in prices due to the higher energy costs lowered exports and increased imports.
However, the latest trade data shows signs that pressure from imports could be easing, a sign of the low domestic demand and lower prices.
Meanwhile, upstream costs are relatively subdued partly also due to the lower demand.
Crude oil prices traded around $85/bbl having peaked at $120/bbl earlier this year.
Gas prices were also volatile and during the cold snap in early December increased to around €145/MWh before dropping to €82/MWh as temperatures increased.
The market update is an exerpt fromt the monthly report.
The GC Intelligence™ Polypropylene (PP) Market Prices, Forecasts, and Analysis reports are published monthly. The reports contain historical, current, and forecast prices of Copolymer Homopolymer, and Post-Consumer Recycled (PCR) PP.
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