Petchem
EMEA Weekly PP Commentary-
Weak Demand in the Final Week of 2022-
Expected subdued demand in JanuaryIn
the last week of 2022, European recycled polypropylene was in low demand,
especially for the natural pellet grades. One market participant said that
natural pellet prices exceeding Eur2,100/mt were unsustainable and
"crazy" in the current environment. Market sources said that little
would change in 2023, with consumers and recyclers both having to do longer
year-end maintenances due to weak demand. Due to the recession and
inflation, which restricted discretionary spending, and a weaker construction
market, consumer demand remained subdued, especially for large-ticket
items. The housing market has been hit hard by higher interest rates.
Companies, as well as national and regional governments, were unable or
unwilling to fund new infrastructure projects. Pre-existing corporate debt
is becoming more...