Europe Plasticizers Market Sees Deeper Declines in Late June

Europe’s plasticizers market remained under strong downward pressure during the second half of June as weak demand, comfortable supply, and falling feedstock costs continued to weigh on prices. The bearish trend accelerated following the easing of Middle East tensions, which led to lower energy and raw material costs and reinforced expectations of further price declines.

DINP and DIDP prices moved lower throughout the month, with sellers increasingly offering discounts to stimulate buying activity. Market participants reported that price reductions became more pronounced toward the end of June as demand remained sluggish and supply within Europe stayed more than adequate. Additional pressure came from the continued weakness in the DOTP market, which improved its competitiveness against DINP and encouraged some buyers to consider alternative products.

DOTP prices also recorded fresh declines during the second half of June. Suppliers lowered offers further in an effort to attract buyers, but purchasing activity remained limited. Traders holding imported material were particularly eager to reduce inventories amid expectations of another round of decreases in July, adding to the downward pressure on the market.

Demand conditions remained weak despite the seasonal period that normally supports consumption in some applications. Many converters continued to rely on existing inventories built earlier in the year, while others awaited the arrival of previously purchased import cargoes. As a result, buying activity remained largely restricted to immediate requirements.

Import material continued to exert pressure on the market. Competitive offers for DOTP from various origins remained available, while locally stocked imported material was traded at increasingly lower levels as sellers sought to clear inventories before further market corrections.

Looking ahead, market participants broadly expect the downward trend to continue in July. Lower feedstock costs, ample availability, and weak demand are expected to keep pressure on prices. The sharp drop in the July propylene contract is likely to add further cost-related pressure across the plasticizers chain. In addition, the summer holiday season is expected to reduce consumption in several European markets, limiting any near-term recovery in demand.

Although prices have corrected notably in recent weeks, some grades still remain above levels seen before the geopolitical rally earlier this year. However, ongoing weakness in demand and continued competition among suppliers suggest that the market could face additional declines in the coming weeks.

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