EU Raw Materials: PP prices continue on the decline, while PSF and viscose push higher

SHIPLEY, West Yorkshire, United Kingdom, June 23, 2022-

Polypropylene (PP) prices continued on their downward trend in June, and industry observers believe it is possible the recent surge in prices may have reached a peak in Europe. As demand has fallen, inventories have been on the rise, and buyers are using their leverage to drive prices lower. Once contracts have been fulfilled, buyers are said to be turning to the spot market to find lower-priced PP. With the summer holiday season now in session, there is no sign that this trend will reverse over the next several months, as PP figures to remain a buyer’s market, at least until the winter holiday buying season begins and demand picks back up.  

In polyester (PET), the demand for virgin polyester chip is said to be somewhat muted even though prices remain significantly lower than hot-washed colorless flake. Prices for recycled PET of all types continues to spike, and virgin material figures to gain more traction in the months to come. In the automotive sector in particular, the switch to virgin material has been evident, as this sector struggles with supply chain issues on multiple fronts and is seeking to cut costs wherever possible. However, with overall PET chip demand somewhat slow, chip prices were down as of mid-June. Although this trend may not hold in the weeks and months to come with recycled chip prices expected to drive the market higher.

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