Despite sporadic production interruptions, polypropylene (PP) prices in the European market resumed their downward trend in early May 2025, primarily due to low demand and an abundance of supply.  The PP market was still oversupplied, and the availability of materials was further increased by backlogged stocks from April. Although scattered logistical issues and isolated plant outages were reported, they had little impact in offsetting the broader weakness in demand from key downstream industries such as construction, automotive, and packaging—factors that have consistently reinforced the prevailing bearish sentiment in the European Polypropylene (PP) landscape.

The price of polypropylene (PP) was further under pressure to decline due to a sustained decline in production costs.  After dropping by EUR 55/tonne in April, the European propylene contract price dropped by an additional EUR 65/tonne in May 2025.  This prolonged drop in feedstock prices reduced producers' pricing power and played a major role in the softening of PP prices.  Minor setbacks, like Versalis's closure of its 95,000 metric ton-per-year propylene production unit at its Dunkirk cracker, offered very little assistance on the supply front.  The ongoing overabundance of Polypropylene (PP) had little impact on the larger market.

Compounding market challenges, critical logistical bottlenecks reemerged in early May. Exceptionally low water levels on the Rhine River hindered smooth inventory circulation, while strikes at major ports including Antwerp and Rotterdam prolonged delivery lead times. Despite these supply-side constraints, Polypropylene (PP) demand continued to deteriorate. Weaknesses, initially seen in the construction and automotive segments, extended into adjacent sectors such as geotextiles as consumer spending remained under pressure, deepening the bearish tone across the Polypropylene (PP) market.

The automotive sector, a key consumer of Polypropylene (PP), remained lackluster. In Germany, new passenger car registrations declined to 242,728 units in April 2025, reflecting a 4.2% drop from March, as reported by the German Federal Land Transport Authority (KBA). Similarly, the construction sector showed continued weakness. The German construction industry is projected to contract by 1.8% in real terms during 2025, marking the fifth consecutive year of decline. Persistent inflation, elevated construction material costs, and weak demand, particularly in industrial and residential construction—have kept most European Polypropylene (PP) suppliers in a wait-and-see mode.

Textile industry demand, another important outlet for Polypropylene (PP), remained subdued in light of deteriorating consumer confidence. The European Commission reports that consumer sentiment in the eurozone fell 2.2 points in April, from -14.5 in March to -16.7 in April.  This drop also reduced the amount of polypropylene (PP) consumed by several downstream industries and was indicative of wider economic instability. European producers now face an uphill battle, grappling with weak domestic demand and increasing competition from East Asian PP suppliers offering aggressive pricing.

At present, Polypropylene (PP) prices in Europe have declined by approximately 1.5% since the onset of May 2025. Buyers have adopted a cautious stance, closely monitoring the potential transmission of the propylene cost drop into PP pricing. This has gradually shifted sentiment from cautious to anxious, as market participants await competitively priced PP offers. The influx of Polypropylene (PP) imports from the Middle East remained somewhat restricted due to ongoing maintenance turnarounds in key exporting countries such as Saudi Arabia. While this has offered limited support to the supply side, it has not been sufficient to rebalance market fundamentals.

Looking forward, European Polypropylene (PP) producers are expected to remain under pressure from both weak regional demand and competitively priced imports. Although quarterly contract mechanisms might prevent sharp near-term price corrections, further downward movement in spot Polypropylene (PP) prices is anticipated in the coming weeks. Buyers, backed by abundant inventories, are expected to intensify negotiations in pursuit of more favorable pricing terms, reinforcing expectations of continued price softness in the European Polypropylene (PP) market.