Falling Demand Puts Pressure Upon Global Polypropylene Prices
- 02-Jun-2022 6:03 PM
- Journalist: Jai Sen
As per ChemAnalyst data, the price of Polypropylene has avidly decreased during the last few weeks due to lower demand from end-use industries. The overall demand fundamentals for the product remained dull across Asia as well as in North America, owing to ample availability for the product amidst the pandemic outbreak in a major Asian economy.
As per the analysis, the price of Polypropylene has decreased by 3% for Raffia grade and 3.5% for Injection moulding grade in India's domestic market during the second half of May. The prime factor for the price fall was inactive regional demand, lesser import proposals from overseas manufacturers, and a plunge in upstream propylene values. Reports of ample product accessibility in the region further pressured prices to downfall across Asia and influenced the market dynamics of Polypropylene in the country.
Recently, China has also experienced a downfall of 1.2% for Raffia grade and 1.2% for Injection moulding in the prices of Polypropylene due to ample availability of stock in the domestic market. As per the insights, it is observed that the net imports in 2022 were almost the same as the last year, 2021, but still so much lower than in 2020, when they were around double the current value.
In the USA, the price is stabilized by 0.7% for Copolymer Injection and 0.9% for the Homopolymer Injection market. Moreover, the account of Polypropylene trading, which was a bit slower as most market participants seemed to take leave for the long Memorial Day weekend, has also influenced the market dynamics of Polypropylene in the country. In addition, Milliken & Company is likely to start the production of Polypropylene clarifiers in its new production facility in Blacksburg, USA.
As per ChemAnalyst analysis, it is expected that global Polypropylene prices are likely to change their market dynamics, as the consistent rise in transportation costs in the USA amidst highly volatile natural gas value may affect the overall prices in the regional market. Meanwhile, demand fundamentals from China might also increase, owing to recovering economic activities after the pandemic.