PP prices down adjust in Europe

This week, PP prices declined in the European region, as per Polymerupdate.

An industry source in Europe informed a Polymerupdate team member, "The European polypropylene (PP) market faced pressure in September, as prices continued to decline due to ongoing weak demand. Market participants had anticipated a seasonal resurgence throughout the month; however, the expected recovery did not occur. A trader stated that the typical September restocking did not occur this year, leading to an oversupply. Due to subdued buying interest, spot prices slipped as producers found it hard to achieve sales at elevated rates. The decline closely followed the softness in homopolymer injection grade, where prices decreased as anticipated, while premiums stayed largely consistent.”

Upstream, the supply of propylene continued to be strong, with no significant alterations to the fundamentals throughout the week. Robust feedstock availability sustained the negative sentiment in downstream polypropylene, allowing limited potential for price recovery in the short term.

In the spot markets, PP injection moulding grade prices were assessed at the Euro 915-925/mt FD North West Europe mark, a week on week drop of Euro (-10/mt), while PP block copolymer grade prices were assessed at the Euro 1015-1025/mt FD Northwest Europe levels, a marginal fall of Euro (-5/mt) from the previous week.

Meanwhile in the contract markets, PP injection moulding grade prices were assessed at the Euro 1350-1355/mt FD NWE Germany and FD NWE France levels, both decreased by Euro (-10/mt) week on week. PP injection moulding grade prices were assessed at the Euro 1340-1345/mt FD NWE Italy levels, down Euro (-10/mt) from the previous week. Meanwhile, PP injection moulding grade prices were assessed at the GBP 1175-1180/mt FD NWE UK levels, a fall of GBP (-5/mt) from last week.

In the contract markets, PP block copolymer grade prices were assessed at the Euro 1450-1455/mt FD NWE Germany and FD NWE France levels, both stable from last week. PP block copolymer grade prices were assessed at the Euro 1440-1445/mt FD NWE Italy levels, steady from the previous week. Meanwhile, PP block copolymer grade prices were assessed at the GBP 1265-1270/mt FD NWE UK levels, a week on week gain of GBP (+10/mt).

Sentiment in Europe’s polypropylene (PP) market stays wary, as participants keep a close watch on October events. Although a few analysts noted a minor uptick in activity, expectations primarily depend on the October propylene contract, which might provide minimal cost relief for manufacturers. Nevertheless, fundamental vulnerabilities in important downstream industries, along with ongoing import strain, are expected to limit any significant rebound. Demand is weak, and the market continues to be oversaturated, one source noted, highlighting the ongoing difficulties confronting European PP manufacturers.

The majority of participants held a pessimistic view for October, observing that expectations for a recovery were not apparent in pre-buying behaviour, which has stayed subdued. Numerous buyers persisted in taking a wait-and-see stance, postponing their purchasing choices due to a lack of stronger indicators from both feedstock and downstream markets. Nonetheless, a small group of players conveyed measured hope, indicating that a seasonal increase in consumption, if it occurs, might offer short-term assistance to the market. Nonetheless, few anticipate that this will lead to a lasting recovery without a wider enhancement in fundamentals.

FCA Antwerp PP homopolymer prices were assessed at the Euro 900-940/mt level, a decrease of Euro (-10/mt) from the previous week, while FCA Antwerp PP copolymer prices were assessed at the Euro 995-1025/mt levels, a fall of Euro (-5/mt) from last week.

Upstream propylene spot prices on Thursday were assessed at the Euro 775-785/mt FD Northwest Europe levels, week on week up Euro (+5/mt).

European propylene contract price for September 2025 settled at the Euro 1005/MT FD North West Europe levels. This price represents a rollover from its August 2025 settlement levels.
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USA Rare Earth Inc. (USAR; Stillwater, Oklahoma) has agreed to acquire metal and alloys manufacturer Less Common Metals Ltd. (LCM; Ellesmere Port, UK), the world's largest producer of rare earth metals and alloys outside mainland China, as per Chemweek.

In a statement Sept. 29, the Nasdaq-listed USAR said it had agreed to acquire LCM for $100 million in cash and 6.74 million shares of USAR common stock under the terms of a definitive agreement signed by the two parties.

The acquisition will enable USAR to process recycled rare earth materials, creating a closed-loop system that can reuse end-of-life magnets and manufacturing waste. This new capability will help address growing sustainability concerns in rare earth processing while providing access to alternative lower-cost feedstock sources.

The deal also positions USAR as the only company outside mainland China capable of offering end-to-end rare earth processing, addressing a critical supply-chain bottleneck that has limited Western magnet manufacturing capabilities.

LCM operates a 67,000 square foot production facility at Ellesmere Port and is the sole proven producer outside mainland China capable of manufacturing light and heavy rare earth permanent magnet metals and alloys at commercial scale.

The company produces critical materials, including samarium, samarium cobalt, neodymium, praseodymium, dysprosium, terbium, yttrium and gadolinium, serving defense, automotive, electric vehicle and industrial sectors across the US, UK, France, Germany, Japan and Taiwan.

According to USAR, LCM’s extensive operational expertise and established supply relationships with raw material providers outside mainland China will strengthen the company’s access to feedstock for its planned 5,000 metric tons per year magnet production facility at Stillwater.

The deal also provides USAR with access to LCM’s government relationships and defense contracts, including recent awards from the Defense Logistics Agency to expand samarium metal production capacity. LCM recently announced plans to expand into France, with anticipated support from the French government’s 2030 investment plan, and maintains relationships with government agencies in the US, UK, France, Australia and Japan.

USAR Chairman Michael Blitzer described the acquisition of LCM as “a bold and transformative leap forward” for the company.

“The combination of USAR-LCM will establish rare earth metal making in the United States for the first time in decades, as we move quickly to integrate these capabilities in Stillwater, Oklahoma, to provide all of the feedstock for the buildout of our 5,000-ton magnet production facility,” he said. “Our ambition is also to expand LCM’s capabilities in both the United Kingdom and Europe, supporting the broader ex-China industry with a wide range of defense and industrial applications.”

The deal is expected to close in the fourth quarter, subject to customary closing conditions, including UK regulatory approval.

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Occidental Petroleum Corp. (Oxy; Houston) is negotiating the sale of its chemical business, OxyChem, to Berkshire Hathaway Inc. (Omaha, Nebraska), according to Chemweek.

The deal, valued at about $10 billion, “could come together within days,” the newspaper said, citing “people familiar with the matter.”

The news that Oxy is negotiating the sale of OxyChem was first reported by the Financial Times Sept. 28, but the potential buyer was not identified.

Berkshire Hathway, the conglomerate led by investor Warren Buffett, is the largest shareholder in Oxy, with 26.91%, according to data from S&P Capital IQ. The second-largest investor is Vanguard Group, with 8.99%.

According to The Wall Street Journal, Buffett first took a stake in Oxy in 2019 to firm up the company’s bid for Anadarko Petroleum.

Berkshire Hathaway has a market capitalization of $1.1 trillion, according to S&P Capital IQ. It holds cash and short-term investments totaling $344 billion, versus debt of $127 billion.

Berkshire Hathaway’s last major chemical acquisition was The Lubrizol Corp., which the company bought in 2011 for $9.7 billion. Lubrizol remains a wholly owned subsidiary.

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Braskem announced Sept. 26 that it has hired financial and legal advisors to assist in the “development of a diagnosis of economic and financial alternatives” for the company amid a global downturn in the petrochemical industry, as per Chemweek.

The company “remains focused on implementing transformation initiatives to mitigate the significant impacts resulting from the prolonged downturn across the entire industry and to strengthen the competitiveness of the Brazilian chemical industry,” it said in in a statement.

Talks regarding the sale of a controlling stake in Braskem were underway even prior to the announcement. Braskem’s main shareholder, Novonor, has been in negotiations with Petroquimica Verde Fundo de Investimentos to sell its controlling stake in the company. A 90-day exclusivity period for the negotiations expired in late August, opening the door to other bids.

Novonor, which is currently under judicial reorganization, holds a 38.3% stake in Braskem, including 50.1% of its voting shares. State-owned energy company Petrobras has a 36.1% stake, including 47.0% of voting shares.

Petroquimica Verde is an investment fund owned by Brazilian tycoon Nelson Tanure.

The announcement that Braskem is exploring financial alternatives prompted S&P Global Ratings to downgrade the company’s credit rating to CCC- from B+.

“Considering the ongoing challenging industry conditions, the company’s sustained high leverage, and a weakening liquidity position, we assess there is a heightened likelihood that Braskem may initiate negotiations for a debt restructuring in the short term,” said S&P Global Ratings analyst Luisa Vilhena in a research note.

The move was S&P Global Ratings’ third downgrade of Braskem’s credit rating in the past six weeks.

Brazil has recently undertaken a series of measures to protect its petrochemical industry from competition with imported materials. In one of the most recent actions, the government extended the validity of the higher import tax for certain chemical products.

Additionally, in 2025, an antidumping duty was implemented against polyethylene imported from the US and Canada. For polyvinyl chloride, the antidumping duty was raised for the US and temporarily maintained for China while an outcome is awaited.

However, import data from the country shows that these measures have not been sufficient to halt the purchase of foreign resins. In the case of PVC, imports have continued to rise after the increase in antidumping duties against the US, with buyers seeking other suppliers, such as Egypt and Colombia, that benefit from tax exemptions.

Platts, a part of S&P Global Commodity Insights, assessed spot PVC at $865 per metric ton CFR Brazil, including duties, Sept. 24, below the most competitive offer heard and corroborated at $880 per metric ton for Egypt-origin material.

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Kazakhstan's national oil and gas company KazMunayGas (KMG) and Italy's Eni have commissioned a 50 MW solar power plant in the western city of Zhanaozen, KMG's press service said, as per Interfax.

The solar plant will supply electricity for the needs of KMG subsidiaries JSC OzenMunaigas and KazGPZ LLP. "The launch of this facility marks the first stage of a 247 MW hybrid power plant project, which combines solar, wind and gas generation and is being built as part of KMG's Low-Carbon Development Program," KMG said.

The new plant is equipped with modern photovoltaic technology, with over 80,000 solar panels installed on an area of around 80 hectares. The panels generate energy from both sides.

It is planned that the station will produce 86 million kWh of energy per year. The hybrid configuration combines renewable energy sources with gas generation, which guarantees supply even in variable weather conditions.

In 2026, KMG and Eni plan to complete the construction of two more facilities - a wind power plant (77 MW) and a gas power plant (120 MW).

The companies began construction of the hybrid power plant in July 2024. The project involves combined electricity generation from renewable (solar and wind) energy sources developed by Eni subsidiary Plenitude, as well as a gas power plant.

Investment is provided by KMG and Eni on a parity basis; the total amount has not been disclosed.

KazMunayGas is Kazakhstan's national operator for the exploration, production, refining, and transportation of hydrocarbons and represents the state's interests in the oil and gas sector.

Eni has operated in Kazakhstan's oil and gas exploration and production sector since the early 1990s. It is a co-operator of the Karachaganak field and a member of the North Caspian consortium developing the Kashagan field. Since 2017, Eni and KMG have jointly held subsoil use rights for exploration and production at the offshore Isatay block.

In Kazakhstan, Eni also operates in the renewable energy sector through its subsidiary Eni Plenitude - Arm Wind LLP. The company has built two wind power plants, Badamsha-1 and Badamsha-2, in the Aktobe region, with a total installed capacity of 96 MW, as well as a 50 MW solar power plant in the town of Shaulder in the Turkestan region.

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