By the end of the current month, polypropylene prices are expected to remain stable, with a minimal decline. While increased activity is observed among converters, particularly for PP homopolymer, this is not a broad-based trend. Market participants do not see any significant factors that could materially change the situation in either the short or long term, suggesting the current trend will persist through year-end.
Preliminary forecasts for the monomer price in November indicate a slight decline, which will most likely lead to lower polypropylene prices. Nevertheless, producers and traders will seek to maintain current price levels, aware that November is the last month of the full trading cycle and a period of potential margin adjustments.
Key points:
- Demand for homopolymers increased mid-month, outpacing demand for copolymers and, in some cases, exceeding demand for certain polyethylene grades.
- Several traders managed to sell injection-molding PP in large volumes, for the first time in about two months.
- Mid-October copolymer demand remains below expectations and typical levels, though it is better than at end-September.
- There is no shortage in the market, and market participants report large supplies of low-priced imported material, mainly from Asia, which is pressuring European product prices.
- On 15 October, ORLEN S.A. submitted a non-binding offer to acquire all shares of Grupa Azoty Polyolefins S.A. (GAP). The offer provides for the acquisition of all GAP shares together with the company’s assets, free of debt and encumbrances, on a cash-free, debt-free basis. The price is PLN 1.022 billion and includes funds for restructuring GAP’s liabilities as well as for buying out shares from the remaining shareholders. The offer is valid until 31 December, and closing is planned for 30 June 2026.
