For the Quarter Ending March 2025
North America
The Recycled Polypropylene (R-PP) market in North America experienced a gradual upward trend in prices throughout Q1 2025, driven by the growth in feedstock costs and constrained post-consumer Polypropylene (PP) bale supply. Especially in USA, during January, prices remained stable, indicating continuous R-PP purchases by downstream companies despite macroeconomic uncertainties.
February saw drastic growth in feedstock costs, particularly for post-consumer PP bales, which nearly doubled since last fall, tightening the supply and pressuring R-PP margins. Growth in the collection of used PP materials intensified the competition for bulk recycling, contributing to higher domestic R-PP pricing.
March saw continued growth in prices, as recyclers struggled to maintain their production costs, and had to pass it on to buyers. Demand remained mixed, with consumer goods, packaging, and automobile sectors showing moderate purchase demand. However, inflationary pressures led some buyers to shift back to low-cost virgin alternatives, limiting aggressive buying activities. As Q1 concluded, tight bale supply, rising feedstock costs, and cautious procurement strategies shaped the market during the quarter.
APAC
The R-PP market in the APAC region showed different trends across key countries in Q1 2025. China faced continued downward price pressure, with excessive inventories and decrease in export orders resulting in a significant 7.1% price decline by the end of February. Domestic usage remained stable, but manufacturers limited purchases due to competitive pricing from the virgin polypropylene market. India, however, saw a moderate price recovery after a sharp 8.7% drop in January, supported by steady demand from packaging and consumer goods industries. Cautious inventory management strategies controlled major rebounds. Japan faced tight supply conditions, which contributed to a 5% price increase by February-end, as increased feedstock costs pressured recyclers. Packaging and automobile sector demand stayed firm, but recyclers struggled with material availability. Across APAC, weak exports, fluctuating feedstock prices, and industry-specific demand changes played crucial roles in price movements. China market remained bearish, while India and Japan saw gradual stabilization and moderate gains, reflecting the varied market sentiment within the region.
Europe
The R-PP market in Europe gradually recovered throughout Q1 2025. Especially in Germany, January began with reduction in prices, as high inventory levels and limited purchase activities caused declines. However, prices experienced growth in February by 3.1%, supported by firm feedstock costs and stable demand from the packaging sector, aligning with EU sustainability mandates. Automobile manufacturers resumed restocking cautiously, contributing to the market stability. March saw further growth in prices, as constrained supply of virgin PP and tightening imports from South Korea reinforced the pricing strength. Despite economic uncertainties, continuous polymer usage in the packaging and automobile industries underpinned the price resilience. R-PP traders remained strategic, aligning inventory levels with changing regulatory pressures, balancing sustainability mandates with competitive pricing. While fluctuations in industrial activity shaped demand volatility, market momentum by the quarter-end favoured cautious optimism, reinforcing a steady price trajectory. Supply concerns, constrained imports, and regulatory frameworks pushing recycled content adoption continued to define European R-PP markets, influencing procurement decisions. The market closed the quarter with prices at USD 1,927 per MT for natural pellets grade.
MEA
R-PP market in the MEA region began Q1 2025 with moderate volatility, driven by steady procurement trends and balanced supply conditions. Particularly in Saudi Arabia, during January, prices saw gradual improvement, supported by the consistent purchases from packaging and automobile industries despite cautious inventory strategies. However, export demand remained limited, preventing any major growth in prices. February experienced a stability in R-PP prices, indicating steady domestic transactions and a controlled supply environment. March began with pre-Ramadan stockpiling, briefly boosting prices before the bearish sentiment caused a 3.4% drop during the mid-month, as excess inventory levels stopped buyers from making bulk purchases. By the last week, prices were observed to be flat, indicating measured resilience despite changing demand patterns. Feedstock availability remained largely stable, ensuring recyclers could maintain output without disruption. Purchase activities varied throughout the quarter as companies adjusted their inventory levels in response to varied demand patterns and cost structures. The focus remained on balancing supply efficiencies while overcoming external trade challenges, ensuring market stability.
For the Quarter Ending December 2024
North America
In Q4 2024, the R-PP market in North America experienced significant shifts as sustainability became a central focus for many industries. The packaging sector, particularly food and beverage, drove demand for recycled polypropylene (R-PP) as companies sought to meet consumer preferences for eco-friendly products. Major brands implemented ambitious sustainability goals, increasing their use of R-PP to enhance their environmental credentials.
However, the market faced challenges due to the competitive pricing of virgin polypropylene, which often made it difficult for R-PP to compete effectively. Additionally, logistical issues stemming from supply chain disruptions continued to affect the availability of high-quality recycled materials. By December, manufacturers were increasingly investing in advanced recycling technologies to improve the quality and efficiency of R-PP production.
Despite these obstacles, optimism remained as stakeholders anticipated a gradual recovery in 2025. Increased collaboration between manufacturers, recyclers, and government agencies was expected to enhance recycling infrastructure and collection systems, ultimately supporting a more robust R-PP market aligned with broader sustainability initiatives across North America.
APAC
In Q4 2024, the R-PP market in the APAC region, particularly in China, saw significant growth driven by increasing consumer demand for sustainable packaging solutions. Heightened awareness of environmental issues and stringent government regulations aimed at reducing plastic waste spurred manufacturers to adopt recycled polypropylene in their products. Industries such as food and beverage packaging, personal care, and textiles were at the forefront of this trend, with major brands committing to sustainability goals that included using a higher percentage of recycled materials.
However, the market faced challenges from fluctuating raw material prices and competition from virgin polypropylene, which often provided lower-cost alternatives. Logistical disruptions continued to affect supply chains, complicating the sourcing of high-quality recycled materials. By December, many companies were investing in advanced recycling technologies and processes to improve R-PP quality and increase production capacity.
Despite these challenges, stakeholders expressed optimism about future growth. Collaborative efforts between governments and private sectors were expected to enhance recycling infrastructure and collection systems, ultimately supporting a more robust R-PP market aligned with global sustainability goals and circular economy initiatives.
Europe
In Q4 2024, the R-PP market in Europe faced significant challenges due to economic uncertainties impacting key industries such as automotive and packaging. The automotive sector experienced a decline in production rates as manufacturers dealt with supply chain disruptions and reduced consumer demand for new vehicles. This downturn resulted in decreased orders for recycled polypropylene used in automotive applications like interior components and bumpers.
Conversely, the packaging industry showed resilience amid increasing e-commerce activity. R-PP was increasingly utilized for flexible packaging solutions; however, stringent regulations regarding single-use plastics prompted many companies to explore alternative materials while enhancing their sustainability practices. By December, manufacturers grappled with high inventory levels due to decreased consumption across various sectors.
Despite these hurdles, there was cautious optimism regarding future growth driven by innovations in sustainable materials and recycling initiatives. Stakeholders expected that regulatory support for eco-friendly practices would significantly influence market dynamics moving into 2025 as industries adapt to stricter environmental standards across Europe’s diverse markets. The focus on circular economy principles was anticipated to drive further investment in recycling technologies.
MEA
In Q4 2024, the R-PP market in the Middle East and Africa (MEA) demonstrated a growing commitment to sustainability amid evolving consumer preferences and regulatory pressures. Countries like Saudi Arabia made substantial investments in recycling initiatives as part of their Vision 2030 strategy aimed at reducing plastic waste and promoting circular economy practices. This focus on sustainability led to increased demand for recycled polypropylene across various sectors, particularly in packaging applications where brands sought eco-friendly solutions.
Despite this positive momentum, challenges emerged from fluctuating oil prices that affected the cost competitiveness of virgin polypropylene compared to recycled alternatives. Additionally, logistical hurdles related to transportation and distribution networks hindered the efficiency of R-PP supply chains in certain areas.
By December, while some manufacturers reported reduced margins due to aggressive pricing from virgin polypropylene producers, overall market sentiment remained stable. Stakeholders anticipated gradual recovery into 2025 as public awareness of environmental issues continued to grow. Collaborative efforts between governments and private sectors were expected to enhance the region’s capacity to meet rising demand for sustainable materials effectively.
For the Quarter Ending September 2024
North America
In Q3 2024, the Recycled Polypropylene (R-PP) market in North America faced a challenging environment, characterized by declining prices and subdued market activity. The market's downward trend was driven by reduced demand from key industries such as packaging and consumer goods, which traditionally absorb significant volumes of R-PP. This decrease in demand came amidst a backdrop of sufficient supply levels, with recyclers and manufacturers maintaining high inventory stocks. This surplus, coupled with competitive pressures from virgin polypropylene, contributed to the challenging market conditions.
The U.S. market, in particular, reflected the broader regional trends, with notable adjustments in pricing dynamics. Competition from lower-priced virgin polypropylene influenced the market, prompting R-PP suppliers to adopt competitive pricing strategies to maintain market share. Additionally, the impact of global trade uncertainties, including fluctuating export volumes, influenced the overall flow of recycled materials. Despite the stability in supply chains, the economic challenges faced by manufacturers led to cautious inventory management, further dampening the market outlook.
As Q3 drew to a close, the R-PP market in North America remained under pressure, reflecting the ongoing struggles with balancing supply and demand. The lack of significant recovery in consumption trends kept prices in check, emphasizing the need for improved demand conditions to support price stabilization. Overall, the quarter highlighted the difficulties recyclers faced in maintaining profitability amidst rising production costs and a competitive market landscape. This period underscored the importance of strategic planning in adapting to the evolving market dynamics and demand fluctuations in the R-PP sector.
APAC
In Q3 2024, the Recycled Polypropylene (R-PP) market in the APAC region faced a challenging environment characterized by declining prices. The decrease was influenced by multiple factors, including subdued demand from key industries like packaging and construction, which traditionally drive R-PP consumption. Additionally, the market faced competition from cheaper virgin polypropylene, further adding pressure on prices. This oversupply, combined with reduced purchasing activities, contributed to the negative sentiment throughout the quarter. China, being a significant market within the region, experienced notable fluctuations during this period, with prices reflecting broader regional trends. While the market showed a slight increase in July, the latter part of the quarter saw a consistent downward adjustment. Seasonal variations and cautious market behaviors among buyers further influenced this trend, leading to softer demand conditions. As Q3 drew to a close, the market for R-PP Injection Moulding grade on an FOB Shenzhen basis settled at 755 USD/MT, indicating a softening of prices compared to earlier in the quarter. The overall market conditions remained challenging, highlighting the ongoing struggle to balance supply and demand amidst competitive pricing strategies and fluctuating demand patterns.
Europe
In Q3 2024, the Recycled Polypropylene (R-PP) market in Europe experienced a steady uptrend in prices, supported by several key factors. Robust demand from industries like packaging and automotive continued to drive consumption, leading to increased pricing pressure. Additionally, constraints in the supply chain and rising production costs, including higher energy expenses, further bolstered the upward pricing trend across the region. Germany, a significant market for R-PP in Europe, saw the most notable price adjustments, reflecting the broader regional trend. The post-summer season brought about a rise in industrial activity, contributing to heightened demand and a corresponding increase in prices. The consistent price growth throughout the quarter underscored the region’s resilience amid fluctuating supply conditions. As Q3 drew to a close, the market for R-PP Natural Pellets FD Hamburg in Germany settled at 1,856 USD/MT, highlighting the sustained bullish sentiment. The quarter demonstrated the market’s ability to adapt to evolving conditions, with demand recovery playing a crucial role in maintaining positive price movements. The overall trend in Q3 2024 emphasized the balance between steady consumption patterns and constrained supply levels, positioning the market for potential growth in subsequent periods.
MEA
In Q3 2024, the Recycled Polypropylene (R-PP) market in the MEA region faced a challenging environment, characterized by a consistent decrease in prices. This downward trajectory was influenced by several key factors, including stable production levels, weaker demand from major sectors like packaging and automotive, and increased competition from virgin polypropylene alternatives. The market’s negative sentiment was further exacerbated by a slowdown in global economic conditions, leading to reduced international orders and a surplus in supply over demand. Saudi Arabia, in particular, reflected the region's overall pricing dynamics, with notable price adjustments throughout the quarter. The country saw a gradual decline, particularly in the latter half of the quarter, as seasonal demand patterns waned. This resulted in a softer market environment, with a focus on stabilizing prices amidst lower trading volumes. By the end of Q3, R-PP Injection Moulding Spot prices in Saudi Arabia settled at 728 USD/MT on Ex-Riyadh basis. The persistent decline highlighted the challenges in achieving a balanced market, underscoring the need for demand recovery to support a more stable pricing outlook in the future.
For the Quarter Ending June 2024
North America
In Q2 2024, the pricing environment for Recycled Polypropylene (R-PP) in North America demonstrated notable stability. This quarter exemplified a balance in supply-demand dynamics, primarily due to consistent availability of raw materials and steady demand from key downstream sectors such as packaging, construction, and automotive.
Despite moderate supply constraints impacting the broader region, enhanced recycling efforts and stable upstream prices for virgin PP contributed to maintaining price equilibrium. Focusing specifically on the USA, where the most significant price fluctuations were observed, the overall market sentiment remained stable. The trends indicated a robust demand from sectors prioritizing sustainable materials, which sustained R-PP prices. Seasonality factors such as increased demand during peak summer sales were offset by efficient supply chain operations, ensuring no drastic price changes. This quarter’s pricing stability starkly contrasts with the same quarter last year, which saw a substantial decline, attributed to previous market volatilities.
Compared to the previous quarter of 2024, the market conditions showed improvement, reflecting sustained demand and balanced supply dynamics. The comparison between the first and second halves of Q2 2024 revealed no significant price difference, underscoring the stable market conditions. Overall, the pricing environment for R-PP in the USA during this quarter has been stable, driven by balanced supply-demand dynamics and supportive market conditions.
APAC
In Q2 2024, the Recycled Polypropylene (R-PP) market in the APAC region experienced notable price increases, driven primarily by strong demand from key sectors such as packaging and automotive, along with supply chain constraints. The emphasis on sustainability and eco-friendly materials heightened R-PP's appeal, contributing to intensified market activity. Additionally, logistical challenges and rising transportation costs played a crucial role in the upward pricing pressure. The cautious sentiment in the market, with stakeholders closely monitoring inventory levels, further compounded the supply-demand imbalance, sustaining elevated prices. Focusing exclusively on China, the market exhibited pronounced bullish trends, driven by robust demand and constrained supply. Seasonal factors, including heightened procurement activities in preparation for summer sales, significantly influenced price volatility. The observed price changes were correlated with increased industrial activity and stable upstream costs for virgin polypropylene. Compared to the same quarter last year, prices were down significantly, reflecting a correction from previously inflated levels. However, the quarter-to-quarter change from Q1 2024 indicated a moderate 1.7% decline, highlighting a stabilization phase within an overall increasing trend. Price comparison between the first and second half of the quarter showed 8.22% rise, evidencing the accelerating demand towards the latter part of the period. Concluding Q2 2024, the latest quarter-ending price for R-PP in China stood at USD 790/MT for injection moulding on FOB Shenzhen basis. This quarter has been characterized by a predominantly positive pricing environment, underpinned by strong demand dynamics and constrained supply channels, reinforcing the upward sentiment in the R-PP market.
Europe
In the second quarter of 2024, the European Recycled Polypropylene (R-PP) market experienced a notable uptick in pricing, buoyed by several key factors. Increased demand from the automotive, packaging, and construction sectors drove this upward momentum, as industries leaned towards sustainable materials. Regulatory pressures advocating for recycled content in manufacturing further amplified demand. Concurrently, supply constraints exacerbated by logistical challenges and limited availability of post-consumer and post-industrial PP waste tightened the market. Rising transportation and logistics costs compounded these factors, exerting additional upward pressure on prices. Focusing on Germany, which witnessed the most significant price fluctuations, the overall trend was bullish. Seasonality played a role, with the peak summer period spurring heightened activity in the packaging industry. The price of R-PP rose by 8.2% compared to the previous quarter, underscoring a robust demand-supply dynamic. However, it's worth noting a substantial decline from the same quarter last year, indicating a complex interplay of market forces over an extended period. Within the quarter, the first and second half showed a 2.1% price differential, reflecting a steady demand trajectory. The quarter concluded with R-PP - Natural Pellets priced at USD 1,820/MT on an FD Hamburg basis in Germany. This consistent increase in pricing illustrates a positive and bullish market sentiment, driven primarily by robust demand and constrained supply, signalling a favourable pricing environment for recycled polypropylene.
MEA
In Q2 2024, the Recycled Polypropylene (R-PP) market in the Middle East and Africa (MEA) region experienced a notable decline in prices, influenced by a confluence of pivotal factors. The overarching market sentiment remained bearish due to an oversupply situation arising from aggressive production and recycling efforts that exceeded the moderate demand from key sectors such as packaging, construction, and consumer goods. In Saudi Arabia, which witnessed the most significant price fluctuations, the downward trend was particularly pronounced. Seasonality played a crucial role, with demand typically subdued in certain periods, leading to heightened inventory levels. The correlation between supply excess and price adjustments was evident, as the market grappled with an abundant supply of post-consumer materials. Compared to the same quarter last year, prices fell significantly, reflecting the sustained negative sentiment. From the previous quarter in 2024, there was a modest increase of 2.44%, which was short-lived as the second quarter progressed. The price comparison between the first and second half of Q2 2024 showed a 2.64% decline, underscoring the persistent downward pressure. By the end of the quarter, the price of R-PP Injection Moulding Spot Ex-Riyadh in Saudi Arabia settled at USD 775/MT, epitomizing the overall negative pricing environment. This consistent decrease highlights the challenges faced by the market, driven by oversupply and tepid downstream demand, overshadowing any short-term gains experienced earlier in the year.
