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Propylene Prices Decline Continues in Europe; October Contracts Settle with Another Drop

Propylene Prices Decline Continues in Europe; October Contracts Settle with Another Drop

Propylene Prices Decline Continues in Europe; October Contracts Settle with Another Drop

  • 03-Oct-2022 7:04 PM
  • Journalist: Harold Finch

Hamburg, Germany: The slump in olefin Propylene prices continues at the beginning of the last quarter of 2022 in Europe. As per several market participants, Propylene contracts have been negotiated with yet another price fall. However, the price decline has been termed less steep compared to the last few months, signifying a slowdown in the drop of the European Propylene price.

Propylene prices in Europe have remained on a consistent bearish rally throughout Q3 2022, and a drop in the price trend continued in early Q4. In Germany, Polymer Grade Propylene prices declined by more than 18% on an FD basis from July 2022 to September 2022.

As per the latest data sourced by ChemAnalyst, Polymer Grade Propylene contracts have settled with a dip of Euro 20 per MT.

Weak downstream demand from polymers and polyols has culminated in dismal fortunes of feedstock Propylene. Europe has been going through high inflation rates, indicating a recession that has weakened consumer sentiment. Traditionally, Q3 and early Q4 have been termed peak demand seasons for the polymers; however, weak consumer sentiment has altered the demand dynamics of downstream Polypropylene.

Downstream Polypropylene prices ran riot in 2021, where prices increased consistently throughout the year, and the trend continued in Q1 and early Q2 2022. However, since mid-Q2, Polypropylene prices have been continuously declining and have not been able to arrest the slide.

As per ChemAnalyst, "the slowdown in prices may indicate towards some optimistic change in the prices for the manufacturers, however with the holiday season impending in late Q4. Any price alteration with manufacturer's interest should occur in November 2022."

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