For the quarter ending March 2022
North America
The prices of recycled Polypropylene fluctuated throughout the 1st quarter of 2022 in North America because of changing feed Polypropylene prices. There was a 7% decrease in the prices of feed Propylene in Q1 2022. However, Propylene prices rose significantly throughout the period, the price trend in downstream recycling industries was not much affected. The demand for RPP was less in January, and the supply was high from the manufacturing industries in the American market, as abundant RPP was available in the market. The prices increased 5% throughout the period, starting January until the last week of March.
Asia Pacific
RPP prices fluctuated continuously in the Asian region throughout the quarter because of shifting prices of feed Polypropylene. In Asia, prices were decreasing in the first month of 2022 because of excess supply and limited demand from the downstream sector. Demand from the textile and household sectors escalated in February and March, which increased the prices in the Asian Market. Prices decreased by 3% on average from the last quarter of 2021 till March 2022 in the Indian market. In India, prices settled at USD 1526.06/tonne by March. The accessed prices were USD 966/tonne in China by the end of the quarter.
Europe
The prices remained strong in the European region and increased continuously throughout the quarter. Feed polypropylene prices showed fluctuations throughout the period, which affected the Production Cost of RPP and reduced energy supplies to industries during the winter months, which impacted the production rate of RPP, due to which prices rose by 5% and 6% in January and February, respectively. Increased freight charges and shipping costs resulted in supply shortages from exporting countries throughout the quarter. The average increase was 15% from the last quarter of 2021 till March 2022. The Natural Pellets prices on FD basis in Germany were accessed at USD 2250 /tonne.
For the Quarter Ending December 2021
North America
Taking support from the volatility in virgin polypropylene prices which stemmed from a strong upstream market following weaker productions from Ida-hit refineries, the Recycled Polypropylene market showed bullishness during October. The spot market stood tightened with supply deficiency amid upsurged demand raising the traders’ sentiments to offer firm contracts. However, the demand lost stream owing to a decrease in queries from the fibre industry and underperforming Automotive sector, while the packaging sector maintained consistent offtakes. The increasing Omicron cases towards the end of the quarter exacerbated the winter season dullness in the market, causing the FOB prices of Recycled Polypropylene in the USA to however around USD 1880/MT during December.
Asia
The Asian Recycled Polypropylene prices exhibited a proliferative trajectory during the first two months of the quarter with constraints in raw material inflow and a strong virgin Polypropylene market. In line with the growing government’s pressure on establishing circularity in plastics, the Indian downstream consumer goods sector showed an unusually high inclination towards Recycled Polypropylene causing the demand to stay robust. China also witnessed a surge in Recycled Polypropylene prices during the initial two months with low production on account of scarce post-consumer bale supplies and energy rationing by the local government. However, the slowdown in market movements due to restrictions imposed for preventing Omicron spread brought slumber in the Recycled Polypropylene market at the quarter-end. The traded Ex-Delhi prices in India and the FOB Shenzhen prices in China settled around USD 1463/MT and USD 950/MT, respectively, during December.
Europe
The prices of Recycled Polypropylene rode on the crest of waves during Q4-2021, with an unprecedented rise in the demand prospects coupled with high input cost due to energy and post-consumer bale shortage. The manufacturers remarked about production volumes not sufficient enough to cater to the number of enquiries. The globally prevalent port container crisis worsened the struggles of market participants by adversely affecting the export activities. Despite the unabated rise in Recycled Polypropylene consumption in the downstream industries, the market sentiments favoured prices to stay cheaper than its virgin counterpart. Notching the highest level during December, the prices of Recycled Polypropylene were assessed as USD 1960/MT FOB Hamburg in Germany.
