recycled polypropylene Pricing Assessment

Markets Covered:

Germany

Saudi Arabia

China

India

Recycled Polypropylene Price Trend, Analysis and Forecast

In Q1 2024, the price of Recycled Polypropylene (R-PP) increased by 2.1%. Despite some uncertainties in the global market, the increase was driven by a modest uptick in demand from key industries such as packaging and automotive. Supply levels remained stable, and the market was supported by a steady flow of post-consumer polypropylene feedstock. However, the overall demand from certain sectors was subdued, with some manufacturers opting for caution due to fluctuating demand patterns. While the market saw a slight increase in prices, the overall trading environment remained relatively stable, and procurement managers took a measured approach to purchasing, navigating through the early quarter’s uncertainties.

In Q2 2024, R-PP prices saw a more significant increase of 7.5%. This surge was driven by heightened demand from the packaging sector, fuelled by seasonal spikes in consumer goods packaging during the spring and summer months. Additionally, tight supply conditions—especially in regions heavily reliant on recycled polypropylene materials—put upward pressure on prices. The recycling sector faced challenges in securing sufficient feedstock, and logistical constraints, such as port congestion and high shipping costs, further exacerbated supply shortages. As a result, R-PP suppliers raised their prices to address the tightening material supply and meet growing demand from downstream industries.

By Q3 2024, R-PP prices began to moderate, increasing by 3.8%. The initial surge in the first half of the year began to cool off as demand from key sectors like food packaging and automotive manufacturing softened. The decline in demand for recycled polypropylene in certain industries, combined with more consistent feedstock availability, led to a stabilization in pricing. However, despite the slowdown in price increases, the market remained dynamic, with fluctuations in logistics costs and demand from sectors such as construction continuing to influence overall price trends.

Looking ahead to Q4 2024, the R-PP market may experience further price adjustments, with potential decreases as seasonal demand weakens. As colder weather sets in across various regions, demand from the packaging industry is expected to soften, and logistical costs are anticipated to stabilize. The reduction in consumer packaging and the seasonal nature of certain industries may contribute to a slight downturn in prices as the market adjusts to changing demand patterns and supply dynamics.

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is your trusted resource for tracking global recycled polypropylene price trends. Our platform delivers real-time data and expert analysis, offering deep insights into the key factors driving price fluctuations in the recycled 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 recycled 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 recycled polypropylene prices

Global Supply Chain Disruptions (2021-2022): The COVID-19 pandemic caused widespread disruptions in supply chains, affecting both the availability of recycled polypropylene (R-PP) and its raw materials. Shipping delays, labour shortages, and port congestion led to increased transportation costs, which were passed on to R-PP buyers. The scarcity of raw materials combined with surging demand for packaging and other goods drove up R-PP prices.

Suez Canal Blockage (March 2021): The blockage of the Suez Canal had a significant impact on global trade, including the movement of polypropylene and recycled materials. The disruption led to shipping delays, increased logistics costs, and price volatility, affecting R-PP pricing globally as manufacturers struggled to secure both virgin and recycled materials.

Rising Crude Oil Prices (2020-2021): Polypropylene is derived from petrochemical products, so fluctuations in crude oil prices can have a direct effect on R-PP prices. In 2020, falling oil prices led to a reduction in virgin polypropylene costs, making R-PP less competitive. However, in 2021, when oil prices rebounded, the costs of both virgin and recycled polypropylene rose, influencing overall R-PP prices.

China’s Plastic Import Restrictions (2018-2019): China’s ban on importing contaminated plastic waste from other countries, including R-PP, significantly impacted the global recycling market. As a result, many countries faced difficulties in managing waste streams, leading to reduced supply of recyclable polypropylene materials. This shortage drove up R-PP prices, especially as countries struggled to find alternative markets for their recyclable plastics.

Demand Surge in Packaging Industry (2017-2018): In the late 2010s, there was a significant surge in demand for recycled materials due to heightened consumer awareness and regulations pushing for more sustainable packaging. The packaging industry, in particular, began increasing its use of recycled polypropylene for products like food containers and packaging films. This higher demand, combined with tight supply, led to a rise in R-PP prices during this period.

PP Price Volatility Due to Hurricane Disruptions (2017): In 2017, hurricanes in the Gulf of Mexico disrupted polypropylene production facilities, leading to a temporary shortage of virgin polypropylene. This impacted the availability of recycled polypropylene (R-PP), driving up its prices as supply tightened and demand remained high.

Methodology and Specifications

recycled 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 R-PP production hubs. This ground-level intelligence is crucial for understanding localized market dynamics.

Supply Chain Monitoring: We track the entire R-PP supply chain, from raw material availability 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 R-PP 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 R-PP 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., construction, packaging), to predict shifts in R-PP demand and corresponding price movements.

Production Capacity and Supply Analysis

Current Production Monitoring: We maintain a comprehensive database of global R-PP 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 R-PP 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 R-PP 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 R-PP 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 R-PP pricing assessments, helping our clients stay ahead of market trends and make informed business decisions.

Specifications

Molecular Weight[g/mol]

CAS No

9003-07-0

HS Code

3902.10

Molecular Formula

recycled polypropylene

Recycled Polypropylene (R-PP) is a sustainable material made from post-consumer polypropylene waste, which has been processed and repurposed for a variety of applications. Polypropylene (PP) is one of the most commonly used plastics due to its durability, resistance to chemicals, and versatility. R-PP is created by recycling used polypropylene products, such as containers, packaging, automotive parts, and industrial products, reducing the need for virgin polypropylene and minimizing environmental impact. R-PP retains many of the advantageous properties of virgin polypropylene, including high chemical resistance, low moisture absorption, and the ability to withstand high temperatures. It is widely used in industries such as packaging, automotive, textiles, and construction. In packaging, R-PP is often used for food containers, caps, trays, and films, offering a more sustainable alternative to traditional plastic packaging. In the automotive industry, R-PP is used for producing interior parts like dashboards, door panels, and seat components. The material is also utilized in manufacturing textiles, such as carpets and upholstery, as well as construction materials like insulation and flooring. By utilizing recycled polypropylene, manufacturers can significantly reduce plastic waste and contribute to a circular economy. R-PP is increasingly recognized for its role in reducing carbon footprints and promoting sustainability across various sectors, making it a valuable material for eco-conscious production.

Packaging Type

25 Kg Bag

Grades Covered

Natural Granules (White), Natural Granules, Natural Pellets

Incoterms Used

Ex-Delhi, FD Hamburg, Ex- Jeddah, Ex-Shanghai

Synonym

Recycled Polypropylene Resin, Recycled Polypropylene Plastic, Recycled Polypropylene Material Post-Consumer Polypropylene (PCP), Recycled PP Granules, Recycled Polypropylene Pellets

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.

Applications

Recycled Polypropylene (R-PP) is widely used across various industries due to its durability, chemical resistance, and environmental benefits. In the packaging industry, R-PP is commonly used for food containers, bottles, caps, trays, and films, providing a sustainable alternative to virgin polypropylene. It helps reduce plastic waste by repurposing post-consumer materials into new packaging products. In the automotive industry, R-PP is utilized for producing interior components such as dashboards, door panels, bumpers, and seat covers. These parts benefit from R-PP’s strength, lightweight nature, and resistance to impact and chemicals, making it ideal for vehicle manufacturing. The textile industry also uses recycled polypropylene in the production of carpets, upholstery, and other woven fabrics. Additionally, R-PP is employed in the construction industry, where it is used in applications such as insulation, flooring materials, and drainage pipes. The material’s durability and resistance to moisture make it particularly suitable for construction environments. R-PP is also found in consumer goods like storage containers, household items, and outdoor furniture, proving its versatility and contribution to a circular economy. By utilizing recycled polypropylene, manufacturers can reduce their environmental impact, promote sustainability, and help close the loop on plastic waste.

Disclaimer

Recycled 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 recycled 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 the price of Recycled Polypropylene (R-PP)? +

The price of Recycled Polypropylene (R-PP) is influenced by several key factors. First, the cost of virgin polypropylene (PP) plays a significant role, as fluctuations in the price of raw polypropylene derived from petrochemical products can impact the cost competitiveness of recycled materials. Supply and demand dynamics are crucial; high demand from industries such as packaging, automotive, and construction can drive up prices, while an oversupply of recycled materials may lower them. The availability of feedstock—specifically, post-consumer polypropylene waste—also impacts prices, as shortages in raw materials for recycling can lead to higher costs. Logistics and transportation costs, including shipping delays, fuel prices, and port congestion, can further affect prices by increasing the cost of moving recycled materials. Additionally, regulatory policies such as recycling mandates or extended producer responsibility (EPR) regulations in certain regions can either incentivize recycling or reduce the supply of recycled material, influencing prices.

How can procurement managers secure the best price for R-PP? +

Procurement managers can secure the best price for R-PP by adopting strategic approaches. Monitoring market trends and staying updated on fluctuations in raw material prices, supply chain conditions, and demand in key industries can help predict price movements. Long-term contracts are an effective way to lock in favorable pricing, protecting against market volatility. Bulk purchasing can also help negotiate lower prices, as it provides suppliers with guaranteed orders. Diversifying the supplier base by working with multiple suppliers from different regions can provide leverage and reduce reliance on a single source, ensuring more competitive pricing. Additionally, developing close relationships with suppliers and committing to long-term partnerships can lead to better terms and pricing over time.

How do global events affect R-PP prices? +

Global events, such as geopolitical tensions, economic downturns, and natural disasters, can have significant impacts on R-PP prices. For instance, geopolitical events like trade disputes or sanctions may disrupt supply chains and create material shortages, causing R-PP prices to rise. Economic factors, such as inflation, changes in consumer demand, or economic recessions, can also affect R-PP prices by altering production levels or reducing demand in certain industries. Natural disasters like hurricanes or floods can disrupt recycling operations and the supply of feedstock, leading to price fluctuations. Moreover, global oil price fluctuations can impact both virgin polypropylene production and the competitive pricing of R-PP, as oil prices directly influence the cost of petrochemical feedstocks used in polypropylene production. Lastly, regulatory changes in major markets, such as stricter recycling laws or waste management regulations, can either drive up demand for recycled materials or disrupt supply, leading to price changes.