In the first week of November 2025, Polypropylene prices in Mexico dropped by 0.99%, followed by a second-week drop of 1.49%, leading to a prolonged 12-week severe downward trend after a surge of polypropylene imports from USA and Canada responding to propylene prices that were at a three-year low. The FMCG and packaging sectors had mixed fortunes due to ongoing sustainability trends accelerating the use of recycled-content and mono-materials to meet extended producer responsibility (EPR)/labeling pressures to facilitate food grade polypropylene packaging compliance. The removal of anti-dumping duty reduced costs for metal/packaging components. Furthermore, the Manzanillo port averaged 1.38-day vessel waits amidst rail delays caused by derailment and protests/blockades restricting access to the ports. Nearshoring continued to support injection molding industry growth, the market faced a crossroads between regulatory compliance and competitive pricing pressures from imports against a backdrop of volatile supply chain dynamics.
In early November 2025, the price of Polypropylene fell 0.99%, impacted by rising imports and weak propylene pricing. The following next week the price dropped 1.49% in the context of oversupply polypropylene, weak inventories under 30 days and no cost support from USMCA or tariffs were contributing factors.
Demand for Mexico's polypropylene random copolymer showed mixed signs in the first half of November 2025 with nearshoring and consumer growth paced the increased usage in injection molding for rigid/flexible packaging. Sustainability and EPR/labeling mandates lifted mono-materials and recycled-content, raising litigation risk on behalf of FMCG who did not meet compliance requirements. There is a discussion related to food-grade Polypropylene recycling that favored compliant films. E-commerce and FMCG pulls helped to ease downward pressure of rail service wait times caused by Sayula derailment and La Barca blockade. The supply of Polypropylene Random Copolymer may continue to increase with formal imports from USA. Mexico quoted lower import prices due to overstock inventories and sharp drop in production cost by USA and Canada polypropylene producers. Port of Manzanillo typical wait time is 1.38 days, and the trucking business has seemed to stabilize while rail service delays from the Sayula derailment have made Pantaco-Manzanillo flow increase. The recent withdrawal of an antidumping duty factor enabled import pricing to be more competitive and possibly better EPR compliance. Overall, the movements of the market can produce a continuous import influx while possibly managing logistical problems concurrently, while adding niche applications and optimization for resiliency.
As per ChemAnaylst, anticipation Mexico's polypropylene market is expected to continue soft prices through late November 2025, despite supply chain pressures due to continued oversupply conditions, limited inventory holdings, and competitive polypropylene imports outweighing nearshoring and sustainability-related demand factors. Rail and port logistics and EPR compliance will be areas to monitor; if recycled-content investments start to create an impact on absorption, stabilization may occur. Nearshoring opportunities present the market with selective opportunities for resilience given regulatory and evolving trade dynamics.
