Polypropylene prices in Europe fall to 19 month low amid softening export demand

11-Dec-14

European polypropylene prices slid to a 19 month low to Eur 1150/mt (US$1420) FD NWE Tuesday, with producers facing a drop off in demand as export opportunities dry up, according to market sources in Platts. Until this week, spot prices had been largely shielded from sliding prices upstream. The fall in the euro had led to an exodus of PP from Europe to markets like Turkey, where European producers were able to displace dollar denominated Middle Eastern and Asian material. However, the tailspin in feedstock prices has dried up this demand source, according to industry participants. Consumers in Turkey and Africa, regions previously targeted by European producers, are not looking to make bookings and buyers in Asia were heard to be reluctant to take on material before January. In addition, domestic demand was further softening as European converters took to the sidelines in the run up to Christmas. A producer said that December demand was "not as expected" customers closing for two weeks over the festive season. "They are closing earlier than usual, on the 19th instead of the 23rd or 24th, and not reopening until the 6th or 7th of January."