European polypropylene (PP) prices continued their downward slide this week amid lackluster demand and the familiar drag of mid-summer slowdowns. In the spot arena, injection-moulding grade PP in Northwest Europe slipped to EUR 935–945/mt FD, succumbing to a EUR 10/mt week-on-week drop. Block copolymer grades fared even worse, falling EUR 30/mt to land between EUR 1,035–1,045/mt FD. The market appears firmly in the grip of a summer slump, with little appetite among buyers amid oversupply and thinning margins.
Meanwhile, contract prices told a more nuanced story. Across Germany, France, and Italy, injection-moulding grade contracts held steady, staying at EUR 1,390–1,395/mt (Germany & France) and EUR 1,380–1,385/mt (Italy). In the UK, though, injection-moulding grades managed a GBP 10/mt uptick to GBP 1,210–1,215/mt. Block copolymer contracts mirrored this regional stability, with Germany, France, and Italy holding firm at EUR 1,460–1,465/mt and EUR 1,450–1,455/mt respectively, while the UK saw a modest GBP 15/mt gain to GBP 1,275–1,280/mt.
This subdued trading tone is largely attributed to the seasonal lull, buyers largely covered minimal restocking needs, while converters’ plants were shuttered for much of late July and August. Oversupply persists as a dominant concern, especially for homopolymer grades, which continue to weigh heavily on market sentiment. Although downstream demand is being kept afloat by the packaging sector, it’s not enough to offset the broader weakness.
Looking upstream, spot propylene prices nudged slightly higher, rising EUR 5/mt to EUR 750–760/mt FD Northwest Europe, even as the August contract slid to EUR 1,005/mt FD, down EUR 10/mt from July. This backwardation and softening contract prices underscore the muted demand environment and abundant supply. Unless demand ramps up by the end of August, the market could see further production pullbacks or more aggressive export strategies from sellers trying to clear excess inventory
