Sluggish Demand Weakens the Sentiments For Recycled-Polypropylene Market
- 06-Jun-2022 6:12 PM
- Journalist: Yage Kwon
China: As per ChemAnalyst, the prices for Recycled Polypropylene have remained stable in the last week Of May in China. Sufficient supplies available in the inventories meeting the weak demand from end industries coupled with strict Covid-19 curbs has resulted in the stable pricing of RPP.
The analysis depicts that upstream Polypropylene prices have continuously weakened amid slower buying sentiments and fewer import orders from overseas manufacturers in the last month. However, the prices have been modestly improved and settled for 1235USD/ton last week for Polypropylene - Raffia grade EXW Dalian (China) as the production processes start flourishing in China.
Additionally, it has been observed that the prices of upstream Propylene and high energy cost gave rise to the higher manufacturing cost of polypropylene. Last week, OPEC announced to raise its daily production quotas for Crude oil, alleviating the market value of the commodity and putting the inflationary pressure on the feedstock’s downstream materials.
Moreover, the turmoil caused by the COVID-19 lockdown has severely impacted the trade and economics of several nations. The port congestion has disrupted the supply chain, giving rise to a significant hike in freight charges. The downstream industry was compelled to procure PP from Asia or the Middle East at lower prices to avoid surplus freight charges. In the USA, the upstream PP prices kept oscillating last month and settled for 2280 USD/ton for PP Homopolymer Injection Grade FOB (Texas). The ongoing geopolitical tension between Russia and Ukraine with the sanctions on Russian goods has disrupted the Crude Oil supply chain in the USA, driving inflation.
As per ChemAnalyst, the demand for Recycled Polypropylene is anticipated to remain stable or decline in upcoming weeks amidst the market performance of its upstream products and sluggish demand. The prices are likely to remain sturdy or increase with the rising energy costs.