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European PP contract price increases may be limited by weak demand, despite slightly firmer propylene

7:55 AM MST | February 7, 2013 | Francinia Protti-Alvarez

European demand for polypropylene (PP) remains weak. The weakness is compounded by propylene feedstock prices, which, between September 2012 and January 2013, shed €70/m.t.  before recovering slightly in February as the market became balanced-to-tight. However, while PP producers will likely be able to use the momentum in the propylene market to achieve increases in PP contract prices, the magnitude of the increase may be limited by the persistently weak PP demand. Upstream pressure on PP decreased between October and January as the European monthly...

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