European PP Market Opens June Quietly as Buyers Anticipate Further Price Drops

Europe's polypropylene (PP) market started June on a cautious note, with buyers largely staying out of the market despite fresh price reductions from suppliers. Many converters believe current cuts are not enough and expect larger corrections later in the month, keeping purchasing activity limited.

The market is now experiencing its second consecutive month of declines following the strong rally seen between March and April, when geopolitical tensions and higher feedstock costs pushed PP prices to their highest levels in several years.

Buyers Delay Purchases

Across both Southern and Northwest Europe, most converters reported having sufficient inventories to meet short-term production needs. As a result, many buyers are choosing to postpone purchases while monitoring market developments and waiting for potentially lower prices.

Several market participants also pointed to incoming import cargoes scheduled to arrive later in June, reducing the urgency to secure additional material at current levels.

Long lead times and uncertainty surrounding future pricing have also made import purchases less attractive for some buyers.

Suppliers Increase Discounts

To stimulate demand, producers, traders, and distributors introduced June offers with price reductions ranging from €50/ton to more than €100/ton. In some cases, larger adjustments were offered to bring prices closer to prevailing market conditions.

However, the lower offers have done little to revive buying interest. Sellers reported that many customers continue to wait on the sidelines, expecting additional reductions in the coming weeks.

Competitive pressure has also intensified as both local and overseas suppliers compete for limited business, leading to more aggressive pricing strategies across the market.

Market Expects Further Corrections

A growing number of market participants believe the current downturn is not yet complete. Comfortable inventories, weak demand, and steady import arrivals continue to weigh on sentiment.

Several producers and traders indicated that further price cuts may emerge during the second half of June if buying activity remains sluggish. Some market players are already discussing the possibility of larger downward adjustments as suppliers compete for market share.

Prices Still Above Pre-Rally Levels

Although PP prices have declined from recent highs, they remain well above levels seen before the spring rally. Market participants believe a portion of the premium created during the period of supply disruptions and elevated costs is still embedded in current pricing.

July Outlook Remains Soft

Looking ahead, sentiment for July remains cautious. Seasonal demand is expected to slow further ahead of the summer holiday period, while adequate supply and incoming imports are likely to maintain pressure on prices.

Unless demand improves significantly, market participants expect the European PP market to remain under downward pressure through the coming weeks, with additional corrections still possible.

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