Low demand for polypropylene hindered price large increases despite producers’ efforts to improve margins. Throughout February, traders hoped for a market revival at the beginning of March, when the construction and agricultural sectors are traditionally more active. However, by the end of the month, it became clear that this process would not happen as quickly as expected. Many converters decided to halt polypropylene purchases until mid-March.
The price of PP raffia increased by €35/t compared to January, while the price of PP block copolymer and PP injection-moulding rose by only €15/t. The contract price of propylene in Europe for March was set €7.5/t higher.
Key market observations:
- Demand for polypropylene remained low throughout February.
- PP raffia packaging tape producers reported a limited number of orders.
- Despite weak demand, traders noted that the most frequently purchased material was injection molding PP (MFI=3-5).
- No raw material shortages were observed in the market.
- Several traders expect an influx of cheap imported material from China, India, and South Korea.
- Some experts pointed out that limited activity on the spot market resulted from the fact that most polypropylene was supplied directly from manufacturers, bypassing intermediaries.
