European PP buyers stay sidelined as June starts quietly; market braces for deeper corrections

European PP markets entered June on a subdued note as buyers largely refrained from fresh purchases, viewing the first round of price reductions as insufficient and anticipating deeper corrections later in the month. June became the second straight month of corrections after the war-fueled rally that started in March drove European PP prices to four-year highs, with market participants increasingly believing that only a fraction of the conflict premium has been unwound so far.

Despite producers and distributors introducing June offers with decreases of €50-100/ton or even more for market realignment, exceeding the €30/ton drop in the June propylene settlement, trading activity remained limited across both Italy and Northwest Europe. Market participants widely reported that converters were in no rush to replenish stocks, citing comfortable inventory levels, incoming cargo arrivals, and expectations of softer prices in the weeks ahead.

Buyers stay covered, await arrivals and lower prices

Most converters reported having sufficient stocks to cover their near-term requirements, reducing the need for immediate purchases. According to them, aggressive imports and weak demand are likely to continue weighing on prices throughout June.

One buyer said he had only received offers for South Korean and Saudi Arabian material so far but intended to skip purchases altogether, as cargoes secured earlier in the year are scheduled to arrive in mid-June. He also noted that imports have become increasingly risky given long lead times and the prospect of further declines in local prices before cargoes reach Europe.

Several players echoed similar views, arguing that current offers still fail to reflect prevailing market fundamentals. As a result, many buyers preferred to collect offers and monitor market developments rather than commit to purchases.

Sellers concede beyond monomer decline amid sluggish demand

Producers, distributors and traders largely started June with reductions of €50-100/ton, despite the more limited decline in propylene costs, in an attempt to stimulate demand after a sluggish May. Meanwhile, some suppliers applied larger decreases of €100-150/ton to readjust their pricing in line with the broader market.

One trader said he had opened June with €50/ton decreases compared to late May levels but remained prepared to grant additional discounts later in the month if demand failed to improve. Another seller noted that buyers were intentionally delaying purchases because they expected further reductions, adding that market activity was additionally hampered by bank holidays across several European countries.

According to market participants, competitive pressure has intensified as both European and non-European suppliers compete for limited business. Some traders were heard offering more aggressive levels than local producers, further undermining sentiment.

Growing expectations for sharper H2 June corrections

A growing number of players believe the current correction has further room to run.

One producer said official June pricing had not yet been finalized but expected substantial decreases during the month, with some market participants already discussing potential triple-digit corrections. He argued that buyers have largely moved to the sidelines due to comfortable stock positions and incoming arrivals, creating conditions for prices to fall more rapidly if demand does not recover.

The producer added that increasing competition among traders and regional suppliers could accelerate the downward trend, particularly during the second half of June when more offers emerge and buyers remain absent from the market.

Similar expectations were shared by distributors and traders, many of whom believe current reductions merely represent the first stage of a broader correction. Several players openly discussed the possibility of additional downward revisions later this month if demand remains stagnant.

How much of the war premium has been erased?

The latest correction follows an unprecedented rally that pushed European PP prices to multi-year highs between late February and early May amid conflict-related disruptions, soaring feedstock costs and limited import availability. However, recent declines have only partially reversed those gains.



While the recent downturn has eased some of the exceptional price inflation seen earlier this year, current levels remain significantly above pre-war levels, suggesting that a sizeable premium is still embedded in the market.

July outlook remains softer

Market participants also expect a weak start to July, as many buyers are likely to continue purchasing only hand-to-mouth volumes while waiting for further corrections. Seasonal demand is set to slow ahead of the summer holiday period, while comfortable supply levels and incoming imports are expected to keep downward pressure on prices. Consequently, many players do not rule out additional decreases extending into July.