India Stable as European PP Prices Dip on Weak Demand, Oversupply

Key Highlights

• European PP prices remain rangebound amid summer slowdown
   
• Spot propylene down €10/MT, pressuring cost structures
   
• Indian PPHP and PPCP prices vary sharply by grade and region
   
• Market sentiment cautious; no aggressive stocking seen

Indian & European PP Price Trends and Regional Breakdown

• In the European spot market, PP homopolymer injection moulding grade was priced at €990/MT FD NWE, while PP block copolymer grade stood at €1090/MT
• In the contract market, IM grade prices were assessed at €1390-1400/MT in Germany, France, & Italy regions. 
• In India, MRPL’s PPHP TQ Film (HF010) in Bhiwandi was priced at ₹99,000/MT, HMEL’s PPHP IM (M12RR) in Mundra at ₹96,000/MT, and MRPL’s PPHP Raffia (HR003) at ₹94,250/MT. 
• MRPL’s PPHP Lamination (HY035R) in Rajkot was listed at ₹1,01,000/MT, while Haldia’s PPCP Random (M312) in Delhi was the highest, at ₹1,06,000/MT.

Demand-Supply Outlook: Seasonal Slowdown and Buyer Caution

• European polypropylene (PP) markets remained soft this week with overall demand fundamentals continuing to underperform. 
• While expectations of higher production costs initially supported injection-grade PP prices in early trading days, the actual market sentiment turned bearish by week’s end.
• Supplies remain ample, especially heading into the traditionally slower summer season. Importantly, market players are not rushing to book volumes in advance for July, reflecting the lack of urgency and tepid downstream demand. 
• The seasonal lull, combined with limited buying interest, continues to suppress any upward price momentum.
• Even though upstream crude prices showed strength recently, this hasn't been sufficient to stimulate demand or influence immediate procurement behavior. Traders and converters remain cautious, contributing to a muted and over-supplied market.

Market News: Softening Propylene Adds Downward Pressure

• Market participants closely monitored fluctuations in upstream oil and feedstock propylene prices, which showed signs of softening. 
• Notably, the spot price of propylene fell by €10/MT this week, affecting PP cost structures. While the June contract price for propylene remained steady at €1015/MT, eyes are on July’s settlement, expected to be shaped by recent instability in the naphtha market.
• Additionally, the expected cost-push from crude oil has not materialized into PP price hikes due to the weak demand backdrop. 
• Sentiment is further restrained by geopolitical tensions and broader economic uncertainties in Europe. 
• The subdued environment has prevented any aggressive pricing strategies from suppliers despite tightening margins.

Expert Opinion: Idle Market Awaits July Direction

• Industry sources describe the market as idle and directionless, with no significant activity observed. The combination of surplus availability and lack of downstream urgency has kept buyers on the sidelines. 
• While July pricing will likely be guided by feedstock dynamics, the overall outlook remains cautious with no major bullish indicators for the immediate term.