In August, the contract price of propylene is expected to fall, which will automatically translate into lower polypropylene prices. However, despite lower prices, demand for this raw material in Poland remains weak and stable. In addition, some converters are planning summer production shutdowns, which will further limit market activity. The mood of market participants is not optimistic, with some players believing that with low demand and further price declines, the current situation could even continue until the end of the year.
In July, freight costs of imported polypropylene from China and East Asia to Europe increased. This situation may limit the scale of price reductions on the European market, including Poland.
Main observations on the polypropylene market in Poland in July
The polypropylene market in Poland remained inactive in July, with demand - particularly for homopolymers - remaining low. The general slowdown in trade was further exacerbated by the holiday season, with many converters and traders halting operations, which translated into a limited number of transactions, both in the copolymers segment and in the PP market as a whole. Among the main polypropylene customers in Poland, packaging and household appliance producers dominated, but some deceleration is also visible in these industries.
