Lacklustre demand has caused another decrease in PP prices. Purchases that traders and manufacturers were hoping for did not materialise to the extent they expected, according to Chem-Courier’s information. Demand for PP raffia remains at a low level. "There hasn't been a single request for the material this month" - one of the traders has said. The situation with injection-moulding PP is slightly better.
Other market trends, PP:
- Converters are purchasing material only on demand.
- There is no materials shortage; rather, there is an oversupply of PP raffia due to the new player entry into the market.
- PP quotes continue to decline. The average market price for homopolymers has decreased by another €20/t compared to the previous week.
- Seasonality and low quotes may lead to an increase in demand; however, players hold low expectations.
- Among the factors that may affect the market is the rising oil rates, which could lead to another increase in monomer value. However, as we can see from the situation this month, this may unlikely affect the PP price. The demand presence will be the most important factor.
Other market trends, PE:
- Traders and manufacturers anticipated an improvement in demand this week; however, there was no significant improvement noted. Players highlight particularly sluggish demand for injection-moulding HDPE.
- Converters are actively negotiating price reductions. They either have raw materials in stock or make purchases solely to meet their low requirements.
- There is enough material to meet consumer needs. However, some manufacturers have yet to send their offers, according to market players.
- European producers and traders continue to reduce prices. Quotes have decreased by €40 - 45/t, compared to the previous week.
- The overall economic situation will prevent demand from significantly increasing, which may lead to another price reduction in May. "Demand drives the market" - one player adds.
- The long-term forecast is more positive. Players say that the situation will start to improve in H2 of the year.
