Brazil Polypropylene Market Remains Under Heavy Pressure as Surplus Stocks Accumulate

At the end of December xxxx, the market of Brazil’s polypropylene homopolymer remains dull with downstream manufacturers are in comfortable position with polypropylene stocks and no unexpected downstream production outages to rush to buy polypropylene. Consistent imports of polypropylene resin, stable supply chains, effective logistics, and run rates domestically so high they were leading to product surplus brought on January cargo prices to spread further out in this market that relies so heavily on imports. “No disruption to logistics, regulation or labor, and stocks are enough, so the urgency for spot market has been weakened.” Although United States sanctions against Venezuelan entities enacted on December xx, xxxx and Brazil’s xxx import duty on polymers (polypropylene) were noted as possible threats to future inflows, the dominant narratives of weak demand and ample supply held sway and left the market oversupplied and overwhelmingly negative.

Continuous availability, high imports and low downstream...