polypropylene Pricing Assessment

Markets Covered:

United States

Canada

Mexico

Belgium

Germany

France

Saudi Arabia

China

India

Polypropylene Price Trend, Analysis and Forecast

In Q1 2024, the global Polypropylene (PP) market exhibited mixed trends, with price increases observed in the European and APAC markets, while the U.S. market saw a decline. In Europe and APAC, moderate volatility in the PP market was driven by fluctuating raw material costs and geopolitical tensions. Rising feedstock propylene prices and changes in crude oil costs influenced price movements. Logistical challenges, such as disruptions in critical shipping routes, escalated freight and insurance costs, further impacting PP price structures. The broader market was shaped by seasonal demand variations and stockpiling in anticipation of future price hikes.

In Q2 2024, the North American and APAC Polypropylene markets saw significant price increases driven by supply-demand imbalances, rising global freight rates, and higher feedstock costs. Unplanned plant shutdowns exacerbated supply constraints, while robust demand from downstream sectors, particularly the automotive industry, contributed to bullish market conditions. Freight rates from Asia to North America surged by over 40%, pushing up import costs. In contrast, the European market experienced a 10% price decline due to lower feedstock costs, subdued demand from key sectors like automotive and construction, and an oversupply of material. High financing costs and reduced consumer spending further dampened demand, especially in the German construction sector, which faced contraction.

By early Q3 2024, the global PP market displayed a mixed trend. In Europe, prices were bullish due to higher feedstock costs and regional plant shutdowns, which caused short-term supply shortages. Rising freight rates also contributed to price increases. In Asia and the U.S., PP prices remained stable, supported by consistent feedstock prices and a balanced supply-demand scenario. The price of Polypropylene Co-polymer Injection Moulding Grade hovered around USD 1,346/MT FD Antwerp after an 8% increase in July 2024.

Looking ahead to Q4 2024, PP prices are anticipated to rise due to strong demand from the downstream automotive sector, driven by increased sales during the festive season. Additionally, anticipated increases in feedstock propylene and crude oil prices are expected to impact the pricing dynamics of Polypropylene.

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is your trusted resource for tracking global polypropylene price trends. Our platform delivers real-time data and expert analysis, offering deep insights into the key factors driving price fluctuations in the polypropylene market. By monitoring critical events such as geopolitical tensions, supply chain disruptions, and economic shifts, keeps you fully informed of market dynamics.

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Track 's polypropylene price assessment on a weekly basis since 2015 onwards, along with short-term forecasts, and get access to the detailed report in a downloadable format.

Historically, several events have caused significant fluctuations in polypropylene prices

Russia-Ukraine War (2022): The conflict caused energy and feedstock price hikes, particularly in Europe, disrupting global PP markets and pushing prices higher due to increased production costs.

COVID-19 Pandemic (2020-2021): The pandemic caused a demand slump in key sectors like automotive and construction, initially leading to a drop in PP prices. However, supply chain disruptions and increased demand for packaging and medical applications caused prices to spike later.

U.S.-China Trade War (2018-2019): Tariffs on petrochemical imports, including PP, led to market uncertainty and price fluctuations, particularly in Asia and the U.S.

2015 Oil Price Crash: The sharp decline in global crude oil prices led to a drop in feedstock propylene costs, resulting in lower PP pric

Methodology and Specifications

polypropylene Pricing Assessment Research Methodology

Data Collection and Sources

Real-Time Market Data: aggregates real-time pricing data from a diverse range of sources, including global commodity exchanges, industry reports, and proprietary databases. This ensures that our assessments reflect the most current market conditions.

On-the-Ground Intelligence: Our team gathers insights directly from key market participants, including producers, suppliers, traders, and end-users, across major Polypropylene production hubs. This ground-level intelligence is crucial for understanding localized market dynamics.

Supply Chain Monitoring: We track the entire Polypropylene supply chain, from raw material availability (e.g., Propylene) to production and distribution channels. This includes monitoring feedstock prices, production capacities, and transportation logistics.

Event Tracking and Impact Analysis

Geopolitical Tensions: continuously monitors global geopolitical developments, such as conflicts or trade disputes, which can significantly impact Polypropylene prices. Our analysis includes potential disruptions to supply chains and their immediate and long-term effects on pricing.

Natural Disasters and Climate Events: We assess the impact of natural disasters, such as hurricanes or winter storms, on Polypropylene production facilities, particularly in vulnerable regions like the U.S. Gulf Coast. These events are factored into our price forecasts and supply outlooks.

Economic Shifts: evaluates macroeconomic trends, including global economic growth, inflation rates, and sector-specific demand (e.g., automotive, packaging), to predict shifts in Polypropylene demand and corresponding price movements.

Production Capacity and Supply Analysis

Current Production Monitoring: We maintain a comprehensive database of global Polypropylene production facilities, tracking their operational status, maintenance schedules, and output levels. This allows us to assess current supply availability accurately.

Future Capacity Projections: Our research includes detailed forecasts of upcoming Polypropylene production capacities, factoring in new plant constructions, expansions, and technological advancements. This helps in predicting future supply trends and potential price stabilization.

Demand Forecasting

Sectoral Demand Analysis: provides in-depth analysis of demand trends across key sectors, including packaging, automotive, and construction. We track year-on-year demand growth and project future consumption patterns based on economic indicators and industry developments.

Global Demand Dynamics: Our methodology considers regional demand variations and how they influence global Polypropylene pricing. This includes understanding the impact of shifts in manufacturing bases, trade policies, and environmental regulations.

Pricing Model Development

Dynamic Pricing Models: utilizes advanced econometric models to forecast Polypropylene prices, incorporating real-time data, historical trends, and projected market conditions. Our models are continuously refined to enhance accuracy and predictive power.

Scenario Analysis: We conduct scenario-based assessments to evaluate potential future market conditions. This includes best-case, worst-case, and most likely scenarios, helping our clients prepare for a range of market outcomes.

Reporting and Client Support

Comprehensive Reports: Our clients receive detailed reports that include current price assessments, future price forecasts, and in-depth analysis of market drivers. These reports are designed to be actionable, providing clear insights and recommendations.

Ongoing Support: offers continuous updates and personalized support to our clients, ensuring they have the most up-to-date information to make informed decisions. Our experts are available to discuss specific market developments and provide tailored advice.

This research methodology ensures that delivers the most accurate, timely, and actionable Polypropylene pricing assessments, helping our clients stay ahead of market trends and make informed business decisions.

Specifications

Molecular Weight[g/mol]

42.08 g/mol

CAS No

9003-07-0

HS Code

390210

Molecular Formula

(C₃H₆)ₙ

polypropylene

Polypropylene (PP) is a highly versatile and widely used thermoplastic polymer known for its durability, lightweight nature, and excellent resistance to chemicals, moisture, and fatigue. Its low density and high melting point make it ideal for applications in industries such as packaging, automotive, textiles, and consumer goods. PP is commonly used in the manufacturing of items like plastic containers, automotive parts, fibres, and medical devices. Additionally, it is highly resistant to wear and tear, which makes it suitable for products that require longevity and repeated use. The material’s recyclability and cost-effectiveness further enhance its appeal, making it a popular choice in both industrial and consumer markets.

Packaging Type

25 Kg Bag

Grades Covered

Co-polymer Injection Moulding Grade, Homo-polymer Injection Moulding Grade

Incoterms Used

FOB Houston, CIF Manzanillo (USA), CIF Montreal (USA), FD Antwerp, FD Hamburg, FD Le Havre, FOB Jeddah, Ex-Hazira, CIF Nhava Sheva (Saudi Arabia), CIF Shanghai (Saudi Arabia)

Synonym

PP, Poly(1-methylethylene)

Quotation Terms:

25-28 MT

Ex-Location: This incoterm refers to a shipping agreement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, including shipping, insurance, and any other fees.
CIF: CIF refers to the Cost, Insurance, and Freight (CIF) terms for goods. Under CIF terms, the seller is responsible for the cost of goods, insurance, and freight charges until the goods reach the port of destination.
FD: FD stands for Free Delivered where the seller takes full responsibility for delivering goods to the location/port. This ensures the buyer receives the goods at the designated port with all necessary costs, except import duties, covered.
FOB: FOB refers to the Free On-Board shipping term, where the seller is responsible for the cost and risk of delivering the goods to the port. Once the goods are on board the vessel, the responsibility shifts to the buyer for all costs, including shipping and insurance.

Property	Specification (Co-polymer Injection Moulding Grade)	Specification (Homo-polymer Injection Moulding Grade)
Melt Flow Index	12-55gm/10 min	11-12gm/10 min
Vicat Softening Point	94-98⁰C	98-100⁰C
Heat Deflection Temperature	81-90⁰C	88-104⁰C
Tensile Strength	19-29MPa	36 MPa
Elongation	10-14%	10%
Flexural Strength	900-1034MPa	1350-1650 MPa
Izod Impact (Notched)	550-53 j/m	27-3500 j/m
Density	0.900 g/cc	0.900-0.906g/cc
Melting Temperature	200-260 ⁰C	210-260 ⁰C
Mold Temperature	15-20 ⁰C	30-50 ⁰C

Applications

Polypropylene (PP) is a versatile polymer with a wide range of applications across various industries. In packaging, it is widely used for food containers, bottles, and plastic films due to its moisture resistance and affordability. The automotive industry relies on PP for interior components, bumpers, and battery cases, benefiting from its lightweight and impact resistance. In textiles, PP is used to produce non-woven fabrics, carpets, and ropes. It is also a key material in consumer goods such as furniture, kitchenware, and toys. In the medical field, PP is utilized in the production of sterilizable medical devices, syringes, and containers. Additionally, its electrical insulation properties make it useful in electrical components like capacitors and cables. In construction, PP is found in pipes and insulation materials, valued for its durability and flexibility. This broad array of applications demonstrates the significance of PP in various sectors, from everyday products to industrial uses.

Disclaimer

Polypropylene price provided by is a base price and excludes VAT/Taxes, discounts, or offers. The information herein is accurate to the best of our knowledge as of the date indicated and is provided solely for the convenience of our customers as a reference for polypropylene. disclaims any warranties or representations regarding the accuracy of results derived from this information. It is the sole responsibility of the user to assess the suitability of the product for their specific application. This document does not constitute an endorsement to use the product in violation of any applicable patent rights.

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Frequently asked questions

What factors influence Polypropylene prices? +

Polypropylene prices are influenced by a complex interplay of factors, including:

Production cost: Production costs directly influence commodity prices. When production expenses rise, such as through higher raw material or labor costs, commodity prices typically increase. Conversely, lower production cost leads to reduced prices of particular commodity.

Supply and Demand: The fundamental driver of commodity prices is the balance between supply and demand. When demand exceeds supply, prices tend to rise, and vice versa.

Economic Growth: Global economic growth, particularly in emerging markets, can increase demand for commodities, driving prices higher.

Geopolitical Events: Political instability, conflicts, and trade tensions can disrupt supply chains, affecting commodity prices.

Natural Disasters: Weather events such as droughts, floods, and hurricanes can impact the production and availability of certain commodities.

Speculation: Financial speculators can influence commodity prices through their trading activities.

Government Policies: Government policies, such as tariffs, subsidies, and regulations, can impact the production, consumption, and trade of commodities.

How do feedstock prices impact Polypropylene prices? +

Many commodities are derived from feedstocks, which are raw materials used in their production. The price of feedstocks can significantly influence the price of the final commodity. For example, the price of crude oil affects the price of gasoline and other petroleum products. When feedstock prices rise, it typically leads to higher commodity prices as well.

What is the relationship between Polypropylene prices and inflation? +

Commodity prices can have a significant impact on inflation. When commodity prices rise, it can increase the cost of production for businesses, which may pass these costs on to consumers in the form of higher prices. This can lead to inflation, a sustained increase in the general price level of goods and services in an economy.