From the outset, producers resisted passing on all of their triple-digit price feedstock relief. Because of their tightening margins, they needed to pocket a sizeable portion of the cost reduction, and did. From their perspective, it was a sorely needed chance to halt the margin erosion seen in recent months.
With the propylene reference contract fixed €35/t ($40) lower, PP producers will have problems improving their margins. No substantial impetus for any price increases is in sight. Instead, they will have to pass on their price relief to their customers.