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Pricing Overview

Polymer & Resin | Polypropylene Pricing Overview

Market Overview

Quarterly Update on Global Polypropylene Market
 
For the Quarter Ending September 2020
 
Asia
 
The Q3 results of the Asian Polypropylene remained lull despite gradual pick up in the economy in the third quarter. In southeast Asia and India, fears of a second Covid-19 wave extended semi-lockdowns in several countries, pressuring the recovery in demand for the finished plastic products. Polymer prices in southeast and south Asia remained suppressed in the mid-August because of weak fundamentals but rebounded in the initial weeks of September when supply tightened due to lesser US-origin PP supplies to Asia backed with robust PP demand in China.
 
North America
 
North America remained silent in terms of showing any big move as several US manufacturers remained shut and production loss aggravated. Two major players LyondellBasell and INEOS declared force majeure on polypropylene (PP) production during the quarter while they opted for precautionary shutdowns ahead of the hurricane Laura, thereby restricting global availability of the product. Polypropylene prices took a substantial leap during the quarter with limited export activity with major increases expected in the next two months.
 
Europe
 
PP demand seemed to improve during Q3 FY20 with the demand in Europe gradually improving towards the end of the year, turning notably stronger than in Asia. Resilient demand from the automotive and medical sector further strengthened the market outlook. Total’s force majeure on the PP plant, announced in early August, did not impact the market negatively, as other producers reported lesser inventories while buying activity seems turning largely to pre-pandemic levels in the upcoming quarter.

How we can help

 

ChemAnalyst addresses the key problematic areas and risks associated with chemical and petrochemical business globally and enables the decision-maker to make smart choices. It identifies and analyses factors such as geopolitical risks, environmental risks, raw material availability, supply chain functionality, disruption in technology and so on. It targets market volatility and ensures clients navigate through challenges and pitfalls in an efficient and agile manner. Timeliness and accuracy of data has been the core competency of Chemanalyst, benefitting domestic as well as global industry in tuning in to the real-time data points to execute multi-billion-dollar projects globally.

Services

Market Analysis
 
Company-wise installed capacity, production volume and plant operating efficiency is captured directly from manufacturers. Import and Export volume is captured from government sources and demand for Polypropylene is calculated considering the production, import, export and inventory-levels on the country and regional level markets.
 
Pricing Analysis
 
Polypropylene price is correlated with the price trend of crude oil, feedstock Propylene and the demand-supply fundamentals.
 
Company Profile
 
Basic details and information on financial performance of leading global players in the Polypropylene market is presented in a visually captivating manner. Expansion plans and the company’s strategy is also captured to understand the vision and mission of the company to help understand the areas where companies need to focus more.
 
News & Deals
 
Daily updates on industry-specific and product-specific news, exclusive primary-based news capturing plant shutdowns/outages/closures, capacity expansions, operating rates, insights on demand-supply situation, awarding of technology licenses, new product launch and deals specifying mergers and acquisitions, strategic investments and disinvestments, to help players capitalize on market opportunity.

Methodology

ChemAnalyst gathers information through primary research surveys conducted with various Polypropylene manufacturers, spread across the domestic and international markets, suppliers and dealers/distributors to gain insights into value-chains and demand-supply scenario to assess the market situation. Thorough study of the company’s annual reports and secondary sources such as exhaustive search on credible paid databases, including our internal database is done to verify the information. All the collected information is analyzed, evaluated and presented in chronological order to depict a meaningful and clear picture of the concerned market.
 
Our dedicated team of industry experts comprehensively monitors and analyzes various aspects of the Global Polypropylene market. The team analyzes various industrial segments, strategic viewpoints and provides an analysis of the industry’s performance in the long run. This would enable our clients in efficiently plan their future investments, mitigate risk, understand the cost dynamics and strike out a balance amidst market volatility.
 
Critical examination of the impact of COVID-19 pandemic on the global supply chains and shift in demand patterns with change in buying behavior of consumers across the globe.
 
Several ongoing development projects across industries are tracked, followed by the details of major projects in the development stage, which can positively or negatively influence Global Polypropylene market.
 
Pricing is captured through exhaustive primary interviews with domestic and international manufacturers, traders and importers and customers on daily, weekly, monthly and yearly basis.
 
Finally, region-specific markets for Polypropylene are analyzed and region-wise demand pattern is tracked.

About

Polypropylene is the world’s second most consumed polymer in the world, possessing remarkable characteristics such as strength, rigidity and the ability to be produced in a variety of molecular weights and crystallinities. Around 30% of the global PP demand comes from packaging applications, among versatile sectors (such as-automotive, sports equipment, clothing, medical components etc.) that it serves. Polypropylene is globally manufactured from the polymerization of feedstock Propylene gas in the presence of a catalyst, which could be either Ziegler-Natta or a metallocene catalyst. Various polymerization conditions (temperature, pressure and reactant concentrations) are considered as per the polymer grade required. The polymerization conditions may include either a gas-phase (fluidized bed or stirred reactor) or a liquid-phase process (slurry or solution). Most of the PP products are processed by Extrusion Blow Molding, Injection Molding, and General-Purpose Extrusion processes. Different grades of PP produced such as Homopolymers, Random Copolymer, Impact Copolymer, Thermoforming, Films etc. using these processes are used for different set of applications in several downstream industries.