The European Polypropylene Market Exhibits Mixed Price Trend with an Uptick in January 2024

European Polypropylene Market

The beginning of 2024 presents a complicated and assorted price trend for polypropylene in Europe. Where the fourth quarter of 2023 was seen struggling with the weak demand, 2024 started with a silver lining for polypropylene prices in Europe.
The European polypropylene market is witnessing an increase in domestic demand for derivatives, fuelled by a decrease in imports from Asia and the Middle East, a ripple effect of the shipping disruptions in the Red Sea. Producers are reporting widespread restocking activities and unexpectedly tight market conditions, as reduced production rates and a combination of planned and unplanned outages continue to pressure the domestic supply, limiting material availability across Europe. Supply shortages and logistical challenges, including tight ship availability along the Northwest European coast, are intensifying consumer access issues and driving up polypropylene prices in early 2024.

Request Access To The Latest Price Trends of Polypropylene

Constricted Production and Outages weigh down supplies in Europe
Abrupt production halts at Versalis' and ExxonMobil's facilities in France significantly restricted material availability in European markets. In addition to that, the prolonged maintenance at TotalEnergies' Antwerp site and an unexpected stoppage at Libya's Ras Lanuf cracker have further deflated the inventories in Europe.

Disruption in Logistics
Logistical challenges, including limited ship availability and high competition for vessels, are worsening supply constraints in coastal polypropylene markets, leading to increased consumer difficulties and sharp price hikes. Additionally, inland markets, particularly in Germany, are facing disruptions due to strikes affecting freight transport, causing delays in polypropylene cargo deliveries and impacting the efficient movement of railcars for refinery operations.
Moreover, the ongoing tensions in the Red Sea, including attacks by Yemen-based Houthi rebels, are disrupting global trade flows, particularly affecting the polypropylene market. This has led to diverted shipping routes, tightened supply, and impacted polypropylene derivative markets.

Read More About Polypropylene Production Cost Reports - Get Free Sample Copy in PDF

According to Procurement Resource, the prices for polypropylene are starkly volatile at present on the back of weak supplies and various planned/unplanned production outages. The inadequate supply has ushered in the silver lining for polypropylene prices, which were otherwise facing a gloomy price trend owing to weak demand side dynamics from the downstream industries until the first week of January 2024.


Get latest News About Procurement Resource
Subscribe for news

This site uses cookies (including third-party cookies) to record user’s preferences. See our Privacy PolicyFor more.