The contract price of propylene is expected to rise in July. However, unlike the polyethylene market, European polypropylene producers will have limited opportunities to raise prices due to continued low demand and the availability of cheaper imports.
In the second half of June, Polish traders began to report delays in deliveries from the Middle East. According to the information available, there is a shortage of available ships and container space, especially on Asian routes, is limited. This is a result of increased global demand for maritime transport, which significantly hinders the rapid delivery of raw materials. The number of pending orders is also growing, raising concerns among manufacturers and distributors that some customers may decide to cancel them. At the end of June, after the de-escalation of the conflict in the Middle East, oil prices returned to stable levels.
The increase in polypropylene prices in July may be influenced by rising freight costs from Asia and a possible recovery in the construction sector.
Market situation in the last days of June:
- Demand for homopolymers was limited - only a few traders reported interest from customers in the first half of the last week of the month.
- The main recipients of polypropylene remain the furniture, automotive and packaging industries.
- Although demand for copolymers also remained low, several distributors noted greater interest compared to homopolymers, especially in the case of block copolymers (PP block).
- Some traders also pointed to growing demand for PP block from the construction sector.
- Average market prices for both copolymers and homopolymers remained stable.
