Resilient Recycled Polypropylene Markets Signal Price Stability in Europe and China

FD Hamburg: European Recycled Polypropylene (R-PP) prices remain stable as the last week of November ends, reflecting a well-balanced demand-supply scenario. The decline in energy prices is advantageous for manufacturers, sustaining healthy profit margins. Meanwhile, the Chinese R-PP market undergoes a notable shift from prolonged price decline to stability, buoyed by moderate demand from consumer goods and appliance manufacturing units. Despite ample inventories, pricing remains steady, supported by lowered production costs.

In the European market, R-PP stands resilient, maintaining stability in its pricing. The domestic price of R-PP remains unaltered from the previous week, a testament to the well-balanced demand-supply equilibrium. Ample availability of R-PP meets the limited bulk inquiries, with no noteworthy shifts in container freight costs during this period. While downstream industries, particularly in packaging and industrial appliance manufacturing, exhibit cautious demand due to market challenges, the Automotive sector sustains healthy demand, contributing to overall market stability. The ongoing decline in energy prices serves as an advantage for manufacturers, positively impacting production costs and allowing suppliers to maintain healthy profit margins. In response to the current market dynamics, businesses in the region have opted for stability, refraining from further price increases and keeping the R-PP market steady.

As the last week of November concludes, the Chinese R-PP market is transitioning from a prolonged period of price decline to a more stabilized pricing scenario. A modest demand from downstream sectors, such as consumer goods and appliance manufacturing units, primarily drives this shift. Despite the presence of abundant inventories in these sectors, trading activities remain somewhat subdued, contributing to an overall sense of pricing stability in the market. As per ChemAnalyst, the price of R-PP FOB Shenzhen reflects this newfound stability. Notably, the major competitor, the virgin Polypropylene (PP) market, has also exhibited price stability amid weakened demand from downstream industries. Market participants suggest that the significant decrease in energy prices has played a crucial role in lowering the overall production cost, contributing to the stability of R-PP prices instead of witnessing further increments.

According to the ChemAnalyst forecast, the R-PP market in both Europe and China is poised for stability in the coming weeks. The market may maintain its equilibrium with stable prices in Europe, supported by a well-balanced demand-supply scenario. The advantageous decline in energy prices contributes to manufacturers' healthy profit margins. Despite challenges in certain downstream industries, the Automotive sector's sustained demand upholds overall stability. The Chinese R-PP market may undergo a significant shift to stability; both regions prioritize stability, with businesses refraining from further price increases, signaling a consistent and stable trend in the R-PP market ahead.