Polypropylene Prices Gain Strength in US and Europe, MEA Sustains Stability for Late March 2024
Polypropylene Prices Gain Strength in US and Europe, MEA Sustains Stability for Late March 2024

Polypropylene Prices Gain Strength in US and Europe, MEA Sustains Stability for Late March 2024

  • 02-Apr-2024 6:24 PM
  • Journalist: S. Jayavikraman

In the US market for Polypropylene (PP), the last week of March 2024 witnessed a notable increase in prices, rising by approximately 1.5%. This surge was primarily fuelled by heightened demand from downstream industries, particularly as the summer season approached. Concurrently, robust purchasing activities within the country further contributed to the upward pressure on prices. However, a significant factor influencing the price hike was the surge in exports to overseas markets during this period, which bolstered a bullish trend domestically. Consequently, the average price for PP Copolymer Grade DEL Houston stood at USD 1011/MT throughout the week.

Meanwhile, in Mexico, PP prices saw a significant uptick of approximately 2.4% following a decline in the previous week. This increase was largely attributed to heightened demand from the downstream automotive industry, which experienced notable improvement throughout the week, particularly evident in surging car sales. Despite the increased demand, the supply of PP remained low to moderate, leading to an overall increase in prices. Cheaper imports, particularly from the USA, where PP prices saw an increase of roughly 1.5%, further exacerbated this trend. Consequently, the average price for PP Homopolymer Grade CFR Veracruz settled at USD 1050/MT for the week.

In the European PP market, significant challenges arose due to tight supply conditions exacerbated by ongoing outages and a shortage of import cargoes. Despite weak demand in key sectors like automotive and construction, prices continued to rise steadily owing to material scarcity. Additionally, market participants remained optimistic despite recent German rail strikes, believing they would not immediately cripple the PP market. The average price for PP Injection Moulding FD Hamburg stood at USD 1400/MT over the week, reflecting the prevailing market dynamics.

Contrarily, in the Saudi Arabian market, the cost of PP remained stable despite price increases in North America and Europe. This stability was attributed to a balanced equilibrium between demand and supply within the region, coupled with consistent prices of upstream Crude Oil. These stable oil prices were reflective of broader global market trends, characterized by significant gains in the first quarter of the year. Brent and West Texas Intermediate, serving as key benchmarks, experienced notable increases during this period due to factors such as OPEC+ output cuts and geopolitical tensions, contributing to robust price gains across the oil market.

In the final week of March 2024, the PP market experienced notable strengthening globally, with stable trends in upstream raw materials providing support from the cost side. Anticipated tightening of PP supply further bolstered a positive outlook. However, steady operations by terminal enterprises emphasized the necessity of stocking up to sustain production levels. On-site trading activities maintained an average pace.

ChemAnalyst, anticipates sustained strength in the PP market in the short term. This projection is based on the expectation of an increase in upstream Crude Oil demand in the upcoming weeks. The favourable trading environment and heightened demand, particularly driven by the seasonal demand for petrochemicals, are expected to be key factors propelling the global PP market forward in the coming weeks.

Related News

Global PP Market Turns Bearish in April with Cheap Raw Materials and High Supply
  • 10-May-2024 4:35 PM
  • Journalist: Bob Duffler
LyondellBasell to Construct Comprehensive Plastic Waste Recycling Center in Knapsack
  • 30-Apr-2024 6:26 PM
  • Journalist: Harold Finch
Truck Driver Shortage and Supply Chain Issues Create Challenges in Europe and Asia
  • 26-Apr-2024 2:27 PM
  • Journalist: Robert Hume
Global Polypropylene Prices Hold Steady Amidst Geopolitical Tensions
  • 24-Apr-2024 6:23 PM
  • Journalist: Rene Swann