Weak Market Sentiments Slow Polypropylene Prices in The US

Weak Market Sentiments Slow Polypropylene Prices in The US

Weak Market Sentiments Slow Polypropylene Prices in The US

  • 08-Jun-2022 1:58 PM
  • Journalist: Patrick Knight

Texas, USA- Lower spot and contract prices in June, on top of muted fundamentals such as weak demand, ample supply, and feedstock propylene prices, slow the prices of Polypropylene in the US market. The weakness in downstream houseware, automotive, and plastic sectors contributed to weaker forecasts and deterred earnings in Q1 2022.

Buyers' interest in bulk purchasing remained thin, and fluctuations in Natural gas and crude prices further supported the downward trend.

New Propylene production capacity from Inter Pipeline's Heartland facility in Canada inside the following 60 days, which will add another 525,000 MT/Yr to the generally more than adequate Polypropylene supply, will additionally uphold the purchaser's contention for cost alleviation in June.

"Supply shortages for colorants and additives remained the issue with constraints supply, but overall, the supply was sufficient." As per our trusted source in Texas.

If we focus on the market sentiments of Polypropylene for the International market, PP prices are slipping due to deteriorating demand and an influx of imports. Traders expect the prices to decline further with the stockpiling of inventories in the region.

This week, Polymer Grade Propylene (PGP) prices remained on the lower end, and the downtrend in pricing continued after May contracts shed a dime, following the same drop in the May propylene contract.

As per ChemAnalyst, the cost of Polypropylene is supposed to drop further where low interest, adequate stock, and feeble downstream market stay the driving variables. Assuming that the cost pattern pursues the declining direction in the upcoming weeks, it will set one more downfall for the June PGP contract costs. However, storm season and production blackouts, particularly PDH units, could switch this pattern. Downstream interest will stay impacted because of low buys and cautiously operating assembling units as indicated by consumers' needs.


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