European PP players foresee stability to slight drops in Dec

November PP deals have been closed mainly with limited reductions of €20-40/ton in the second half of the month due to subdued demand and more-than-comfortable availability. As the month draws to a close, players have shifted their attention to December, with expectations leaning towards a stable to slightly softer trend.

Poor fundamentals still weigh on the market

Suppliers continued to lament the lingering weakness in market activity, as converters limited their purchases due to high stock levels and slack demand for end products. Availability, meanwhile, is deemed more than comfortable amid the lack of production issues across the bloc.

However, some regional producers started to reduce their operating rates in an attempt to stem the relentless downtrend, which is now in its eighth consecutive month.

Interest in imports improves for Q1

Some suppliers in Italy noticed a pickup in demand for material with delivery in the first quarter of 2026 as some large-scale buyers secured volumes for the post-festivities period. Saudi origins have been the most aggressive recently amid PPH deals at €840/ton DDP with delivery in late January. South Korean material, meanwhile, lost competitiveness as PPH and PPBC offers stood at €840/ton and €890-900/ton CIF Italy, respectively, showing a small increase compared to early November due to rising freight rates. Meanwhile, Chinese PPBC was offered at €870-880/ton DDP with delivery in March.

A distributor selling South Korean material commented, “Demand for November is slack but we noticed a better buying interest for Q1 2026. Some buyers are securing stocks to be covered until March as current prices are aggressive amid multi-year lows. Plus, we think that the bottom level might be nearing soon.”

Is the bottom in sight?

Players shared their expectations for December on a stable to softer note as they mainly think that the bottom might be reached soon in the PP market.

Accordingly, PP prices are likely to witness stability or possible further small downward adjustments, especially if traders or distributors need to lower their stocks ahead of the Christmas festivities. Converters are expected to run their plants only for two or three weeks, resulting in slow demand.

When it comes to early 2026, players agreed that stability is the most likely scenario given arriving import cargoes on the one hand and European producers’ intention to hinder the downturn on the other.