Polypropylene Prices Show Mixed Sentiment in October 2022

Polypropylene prices rose and fell during October in Asian markets. At Present, the start-up demand has been low, orders are declining, and polypropylene businesses are still losing money. There is also a strong expectation of a fall in demand, which is influenced by seasonal variables and the unfamiliar situation. The current market is dominated by sluggish demand overall, and Polypropylene has difficulty temporarily altering this weak pattern.

Despite lower propylene settlement, European PP producers first proposed projected price increases on the back of the inclusion of an energy premium. This comes after significant declines in Polypropylene prices for five straight months. As underlying demand remained weak and energy surcharges could not be reflected entirely on transactions, the initial raise proposals were scaled back. Although it has been reported that some players are cautiously increasing stock levels in anticipation of a price upturn shortly, PP demand is still at a moderate level. In recent months, PP producers have reduced production run rates by 20–30% to improve market balance. Strikes and planned and unscheduled plant shutdowns have also affected the availability of materials. However, a consistent import influx of material has helped maintain supply.

Overall, Polypropylene's supply and demand situation is weak in the global market. Continuous losses, diminishing orders, a low rate of consumption from construction, and heavy inventories all impact the supply side. The general drop in demand and seasonal influences make it challenging to boost the demand side. In this situation, there is a strong likelihood of polypropylene accumulation, the price will remain low, and the operation should adopt a bearish mindset.

According to ChemAnalyst, the cost of PP in the Asian markets has been decreasing on the back of low buying sentiments, but several market players expect the PP market to rebound in the following weeks. In Europe, the prices are rising due to the energy surcharges, but weak demand is likely to stabilize European PP prices in the domestic market.