After increased activity in mid-January, the PP market calmed down and by the end of the month prices remained stable. In H2 January, converters started to inquire materials for February delivery. As forecasted by Chem-Courier, PP has appreciated by €30-40/t this month. At the same time, increasing demand from converters was becoming more apparent, although many were still adjusting to the new price conditions.
Producers are expected to raise prices by EUR 20-30/t in early February. However, the ongoing crisis in the European automotive industry has prevented an increase in demand. According to market participants, PP market conditions may improve no sooner than in March, with the start of the agricultural and construction season.
- Demand for homopolymers declined in the last week of January.
- Several traders noted that PP homo was sold better than copolymers.
- Customers were mainly asking for PP for injection-moulding grades, but for a February delivery.
- Prices either rolled over or moved slightly up last week.
- Demand for copolymers slightly decreased compared to mid-January.
- One trader noted that only half of the customers had expressed interest in the material purchase, while the majority were still focused on market analysis and price comparisons.
- Some traders have not yet purchased imported material from Asia or have limited their off-takes to small quantities.
