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European Polypropylene:Outages and reduced rates continue to mitigate the effects of weak demand / Consumers continue to buy hand-to-mouth as import restrictions continue / Contract prices remain at Eur30/mt less than the previous month

European Polypropylene:Outages and reduced rates continue to mitigate the effects of weak demand / Consumers continue to buy hand-to-mouth as import restrictions continue / Contract prices remain at Eur30/mt less than the previous month

Jun 14, 2024

European polypropylene markets saw consistentfundamentals in the week to June 12 as weak demand continuedto contrast with ongoing tightness of availability.Buyer appetite remained weak across the week, with broadermacroeconomic pressure continuing to limit the need for materialfrom derivative sectors.Consumers were heard to be buying hand to mouth as a resultof weakness in downstream industries.With any seasonal activity from the construction industrydiminishing across the week and players preparing to winddown activities for summer, sources anticipated the weakness indemand to persist into H2.Despite this, market fundamentals were kept balanced acrossthe week as a result of various outages in the continent andongoing constraints on import availability as shipping routesremained diverted and container costs stayed high due tosecurity tensions in the Red Sea. A producer reported "Historic levels of supply". "... The cost of...

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