European PP Market Remains Under Pressure as Buyers Hold Back for Bigger Discounts

The European polypropylene (PP) market entered June with limited activity, as buyers largely stayed away from fresh purchases despite the latest round of price reductions. Many market participants believe the current decreases are not enough and expect further corrections in the coming weeks.

This marks the second consecutive month of declining prices after the sharp rally seen between March and May, when geopolitical disruptions and higher feedstock costs pushed PP prices to their highest levels in nearly four years.

Buyers Prefer to Wait

Across Italy and Northwest Europe, most converters reported having sufficient inventories to cover their immediate production needs. With additional import cargoes expected to arrive during June and demand remaining weak, buyers see little urgency to replenish stocks.

Many market players believe prices have not yet fully adjusted to current supply-demand conditions. As a result, purchasing activity remains largely limited to essential requirements while buyers continue monitoring the market for better opportunities.

Import purchases have also become less attractive due to long delivery times and the risk of prices falling further before cargoes arrive.

Sellers Offer Larger Price Reductions

To encourage buying interest, producers, distributors, and traders introduced June offers with reductions ranging from €50/ton to €100/ton. In some cases, discounts reached €150/ton as suppliers attempted to realign prices with softer market conditions.

Despite these adjustments, trading activity remained slow. Several sellers reported that buyers continue delaying purchases because they expect additional price cuts later in the month.

Competition has also intensified as both European and overseas suppliers compete for limited demand, leading to increasingly aggressive offers across the market.

Market Expects Further Downside

A growing number of market participants believe the current correction still has room to continue.

Producers and traders noted that comfortable inventories, incoming imports, and sluggish consumption are creating conditions for further price declines. Some market players are already discussing the possibility of triple-digit reductions if demand fails to improve during the second half of June.

The increasing number of suppliers competing for sales is also expected to add pressure to the market.

War-Era Premium Still Present

Although PP prices have moved lower in recent weeks, they remain significantly above levels seen before the spring rally. Market participants believe a considerable portion of the premium created by earlier supply disruptions and elevated feedstock costs is still reflected in current pricing.

July Outlook Remains Weak

Looking ahead, sentiment for July remains largely bearish. Seasonal demand is expected to soften further as Europe approaches the summer holiday period, while ample supply and steady import arrivals continue to weigh on the market.

Unless demand improves noticeably, industry participants expect PP prices to remain under pressure through June and potentially into July.

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