July PP offers rolled over in Europe as fundamentals override hike intentions

European PP markets started July with mainly rollovers, as earlier expectations for price hikes gradually lost traction following a flat settlement in the propylene contract and fading geopolitical concerns. Despite modest firming attempts voiced in late June, the market has shifted toward stability due to persistent demand weakness, long supply, and seasonal lull.

Hike expectations erode as C3 settles flat

Throughout June, firmer pricing prospects had stirred some buying interest, especially with upstream volatility keeping the sentiment cautiously bullish. However, these expectations unraveled after tensions in the Middle East de-escalated and the July propylene contract settled flat, providing no cost-push support for PP hike attempts.

A seller who initially planned for price increases aligned with the earlier bullish tone said they eventually rolled over July allocations, citing the absence of support from upstream costs. “We might even need to offer slight discounts to stimulate demand,” the seller admitted, pointing to the market’s ongoing struggle with muted activity.

Weak demand and ample supply leave sellers with limited options

Converters across Northwest Europe and Italy remained largely unresponsive at the start of the month, citing slow end-product sales and high inventory levels. Many players have already shifted to holiday mode, further curbing trading activity. In Italy, buyers continued to reduce purchases ahead of the summer shutdowns, while many in Northwest Europe were reported to be on break as of early July.

A source from a non-European supplier said, “We are finalizing June shipments and would not accept new orders until mid-July given the force majeure. Even so, our volumes are offered at rollovers. There’s simply no room for hikes under current circumstances.”

Imports firm slightly, but arrival timelines and market conditions limit impact

On the import front, South Korean PP offers with September arrival posted slight increases by late June. Still, these firmer offers failed to alter the market balance, as players weighed the long lead times against prevailing uncertainties. Some converters opted to secure limited volumes as a precautionary move against potential disruptions, but the appetite for large-scale purchases remained limited.

Sellers eye rollovers: Will they be able to halt downtrend?

Players are discussing if sellers will be able to halt the three-month downtrend amid flattened upstream costs, ongoing demand fatigue, and seasonal slowdown. They broadly expect July PP deals to be closed with rollovers. While the downtrend appears to have halted for now, sellers’ ability to maintain rollovers will hinge on how demand evolves in the coming weeks. Further softness may not be ruled out if buyers remain sidelined.



As of late June, spot PPH prices in Italy neared two-year lows, according to the weekly average data on ChemOrbis Price Index. In Northwest Europe, prices hovered around one-and-a-half-year lows.

“Until we see a meaningful uptick in demand or a change in macro conditions, hike attempts will remain unworkable,” a trader noted. Several players believe that meaningful upward momentum will not return before September, when seasonal activity picks up and potential cost changes could provide firmer ground for new price strategies.