Weak cost support fluctuated the market of Polypropylene in global market
- 23-May-2022 3:18 PM
- Journalist: Harold Finch
A prominent Saudi Arabian producer lowered Polypropylene prices for African and Middle Eastern markets, reversing a bullish trend observed over the past few weeks. However, this provided little relief for buyers grappling with inflated prices in an unfavorable economic environment for months. The demand for Polypropylene from China and Turkey also fell due to Labor Day and Eid al-Fitr, resulting in port congestion which dropped the prices.
Fluctuations in crude and Naphtha oscillated the market of feedstock Propylene, and prices fell. After a few weeks of firmer pricing, Saudi producers’ offers to the Chinese market dropped $60/ton for PPH raffia compared to April. In terms of inventories, they started to surge among the ports, and weak market sentiments also affected the downstream ventures in the region. As of 20 May, the price of Polypropylene slipped to USD 1610/ton (Polypropylene Injection molding) FOB Jebel Ali.
In Europe, the prices also fluctuated. The prices slowed after feedstock propylene production improved for a couple of weeks because of fluctuations in upstream values. The purchasing appetite remained deterred for this following week following the Eid al-Fitr occasions as inflationary pressure has left a mark on end product interest. Deteriorating interest from derivative business sectors kept hauling import PP costs down despite the end of the holidays. Cost cuts were additionally in accordance with the debilitating in different outlets, including China and Europe.
According to ChemAnalyst, the price of Polypropylene is expected to increase in the forecast period with oscillations in crude oil prices. Strong market sentiments and insufficient product availability will keep the prices on the high end. Common plant shutdown and inflationary costs will keep the Polypropylene market intact. Surging demand from downstream Plastic and packaging industries and cautiously operating industry will increase the sales and revenue of the major producers. Streamflow purchases and logistics constraints will force the significant producers of Polypropylene in Saudi Arabia to revise the domestic and international market prices.