In July, European PP prices largely followed the propylene reference contract, as there were few impulses from either the supply or demand side. As many buyers sensed that prices had bottomed out and thus reached for their order books, producers could at least stop the erosion of their margins.

Compounds, too, followed the reference guidelines. One important compounder is trying to adapt to the structural changes established last year by the leading player. But these corrections towards a higher price level are negotiated individually and do not influence the market generally, and so are not reflected in the price table.

The propylene reference contract for August rolled over from July. As this year is seeing a classic summer lull, the market is relatively quiet and looks likely to stay that way for now.