European PP Prices Rise Amid Supply Constraints, Strategic Reviews Underway
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The European polypropylene (PP) market experienced a modest increase of approximately 0.8%, driven by restricted imports from the Middle East and North America and recent plant closures.
Polymer Price
- PP Raffia (±0) Rs.94.50/kg levels Ex Godown
- PP Film (±0) Rs.100.50/kg levels Ex Godown
- PPCP (±0) Rs.100.25/kg levels Ex Godown
- PP Lamination (±0) Rs.105/kg levels Ex Godown
- LLDPE (±0) Rs.88.5/kg Ex Mundra/Bhiwandi
- LDPE prices are around (±0) Rs.116/kg Ex Mundra/Bhiwandi
- HDPE PE100 Natural (±0) Rs.92/kg Ex Mundra/Bhiwandi
- HDPE PE100 Black (±0) Rs.92.5/kg Ex Mundra/Bhiwandi
- HDPE HM (±0) Rs.93/kg Ex Mundra/Bhiwandi
- HD Blow Molding (±0) Rs.91/kg Ex Mundra/Bhiwandi
- Low K (P700/TH700) (+0) Rs.85/kg Ex Nhava Sheva/Mundra
- LG LS100H (+0) Rs.77/kg Ex Mundra/Bhiwandi
Polymer Demand and Supply
- The European polypropylene (PP) market experienced a modest increase of approximately 0.8%, driven by restricted imports from the Middle East and North America and recent plant closures.
- Many companies in the PP industry are now reassessing their refineries and assets across Europe.
- The low supply of PP is evident from the 2% price increase observed in August 2024, with expectations of further hikes in September.
- Demand for PP across Europe remained moderate, with minimal activity in the downstream construction, automotive, and textile sectors, leading to subdued trading.
- The European petrochemical industry faces significant challenges, including market pressures, cost constraints, and evolving regulations.
- Producers are conducting strategic reviews to protect their margins and ensure profitability.
- For example, LyondellBasell, which began a strategic review of its European assets in early May, recently detailed its short-term goals.
- Similarly, ExxonMobil and Sabic have announced the closure of some of their assets.
Polymer News
- Chi Mei is planning to shut down its No. 3 Polybutadiene Rubber (PBR) Unit in October 2024 for maintenance work. The unit is located in Tainan Hsien, Taiwan.
- Ningbo Kingfa Advanced Materials has shut its No. 2 Polypropylene (PP) Line for maintenance work. The line is located in Ningbo, China.
- A leading Chinese trader offered GPPS 525 at US$ 1240/- per MT CFR Nhava Sheva/Mundra for October shipment.
- Brent Crude Oil prices traded lower at USD/bbl 69.61.
Expert Opinion
Current demand for PP in Europe is primarily driven by inventory restocking amidst low availability. European suppliers are increasingly relying on domestic production as imports from the Middle East are delayed due to worsening conditions in the Red Sea.
Daily Market Report
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