Contract and spot prices for polypropylene in Northwest Europe continued on their downward spiral this week, due to an inventory overhang and low demand, as per Platts.
Gross contract values for November consolidated at Eur 1255-1260/mt FD NWE for homo injection and Eur1305-1310/mt for copolymers. This indicates a fall of Eur 55/mt from October levels, and the lowest since April 2010. Demand in November is slower than the previous two months as caution is exercised amid economic uncertainty in Europe.
This has led to a buildup in PP stock in Europe, estimated at around 850,000 tons, way above the 750,000 ton level that the current market could absorb. Additionally, converters continue to purchase only the volumes that will cover their short-term requirements.