For the Quarter Ending September 2023
North America
The U.S. Recycled Polypropylene (R-PP) market in the third quarter of 2023 experienced a continuous price decline. At the beginning of Q3, Market sentiments continued to remain bearish across the region on the back of a sluggish demand outlook from the downstream Packaging and Textile industries. In addition, the enterprises from the local region claimed that they have sufficient inventories in the region for further requirements. Also, major manufacturers experienced operational hurdles, which resulted in a cautious approach that led to limited trading activities, prompting sellers to keep the price at its lower end. Furthermore, in the months of August and September, the price again showcased a bearish momentum largely attributed to a reduction in export activities, primarily caused by drought conditions in Panama. The slowdown in shipping through the Panama Canal led to a decrease in export volumes of recycled products. Consequently, the domestic market has witnessed the accumulation of high inventories of raw materials, which has significantly influenced market dynamics. Despite the consistently high demand from downstream industries, the presence of ample inventories within the local market has played a pivotal role in further declining trends.
APAC
The price of Recycled Polypropylene (R-PP) remained bullish over the third quarter of 2023 and showcased an increment of approximately (2.4%) during the entire Q3. At the beginning of Q3, the Market analyst primarily ascribed a descending trend witnessed on account of a shift in demand, with significant key sectors such as the Packaging and Plastic industry. Additionally, Recyclers throughout the Chinese region have expressed concerns about the high backlogs of inventories; furthermore, diminished international market fundamentals manipulated market participants for further investment in the product. In the months of August and September, the Recycled polypropylene industry encountered a significant upturn. This hike in the price of materials occurred on account of a shift in demand, with significant key sectors such as the Automotive industry, while the downstream construction and building sector also looked to build up their stock at a lower price level for further requirements due to which healthy spot trading activity has been observed within the domestic market, thus keeping recyclers motivated and the price elevated. Furthermore, the Chinese market has encountered delivery delays, resulting in a tighter supply situation and kept the market bullish.
Europe
The price of the Recycled Polypropylene R-PP remained bearish over the third quarter of 2023 and showcased a decrement of approximately (14.6%) during the entire Q3. The price of the Recycled Polypropylene R-PP showcased a declining trend at the beginning of Q3 2023. This sharp price fall was observed because of gloomy demand outlooks from the downstream Packaging and Textile industries. On the other hand, healthy availability of the material had narrowed the gap between demand and supply, consequently opening doors for the purchasers to offer lower bidding prices and forcing the suppliers to provide discounts to sell their inventories. Furthermore, in the months of August and September, the persistent sluggish demand for Recycled Polypropylene(R-PP) from the Packaging and Textile industries, both domestically and globally, has negatively impacted the product's pricing. Moreover, the weakened Purchasing Managers' Index (PMI) in the region has further exacerbated market challenges, with reduced manufacturing activities and industrial output in countries contributing to decreased demand for finished products within the market, with weaker consumer spending. Furthermore, the region is experiencing repetitive surges of material, resulting in an overflow situation.
MEA
The Recycled Polypropylene R-PP market continuously followed a declining price trajectory throughout the third quarter of 2023 and showcased a decrement of approximately (4.4%) during the entire Q3. At the beginning of Q3, the continuous sluggish demand for R-PP from packaging and plastic industries in domestic and global markets hampered the price of the product. The spot market continued to observe a slower pace. Despite the lower spot price offers, petitions from the enterprises remained low. The manufacturers were seen under pressure with a declining demand situation and were found to claim a lower consumption rate of R-PP from the associated downstream businesses. Furthermore, significant manufacturing units have cut their production rate to avoid further building of stocks, as buyers refrained from placing large orders. Furthermore, in the months of August and September, the consistent inflow of material from the Chinese market left buyers hesitant due to high inventories. As demand fell of exaptation from the downstream industries with it, Enterprises didn't show any interest in bulk purchasing instead. Furthermore, the market participant looked interested in procuring their stocks on an immediate basis. However, demand from the Automotive sector was moderate but was not enough to hold the market at a steady position. This results in muted trading activities, pushing the sellers to provide discounts on the product and keeping the overall market fundamentals bearish.
For the Quarter Ending June 2023
North America
In the second quarter of 2023, the prices of Recycled Polypropylene R-PP showed an overall declined price trend amid uncertain economic conditions coupled with the raised inflation rate. In April, the price of R-PP showed a decrease in price due to low demand from the major associated downstream packaging and Construction industries amid surplus availability of material. Furthermore, ample araciality of waste PP material at a cheaper price from the overseas market provoked the local mills to reduce their offer prices. In May, the debt crisis that happened due to the simultaneous downfall of major banks in the USA caused a drastic effect on the US marketing condition and motivated the buyers to hold back from placing large orders with it, R-PP market experience further decline trend. The inventory level remained high in the month of June, as the market remained under pressure from the weak downstream demand from the Textile and packaging segment. Furthermore, weak demand from international market has created overall pessimistic market leaded to slump in price of the commodity.
APAC
The price of the Recycled Polypropylene R-PP remained bearish over the second quarter of 2023 and showcased a decrement of approximately (13%) during the entire Q2. In the beginning of Q2, Market analyst primarily ascribed this descending trend witnessed on account of sluggish query from the associated businesses like Textile and packaging industries. Furthermore, in the month of May, added that the R-PP market is experienced the impact of downturn in the price of virgin PP material, also a rise in post consumers product collection rate, leaded to ease in availability of base material, but weak consumption rate from key downstream sectors posed difficulties for the recyclers. Transactions remained challenging as purchasing activities remained at its lower hand. Additionally, Recyclers throughout Chinese region have expressed concerns about the high record, furthermore, diminished international market fundamentals manipulated market participants for further investment in the product and recyclers across the region claimed operational hurdles in the month of June. Thus, the price of R-PP-Injection Moulding FOB Shenzhen settle down at USD 830/MT in the last month of Q2.
Europe
The price of the Recycled Polypropylene R-PP showcased a surging trend in the beginning of Q2 2023, in the wake of declined in the inventories level of among major enterprises, Furthermore, rise in trading activities has been observed from the market participants to replenish their stocks to meet the downstream requirement. Suppliers took advantage of the situation and utilized this opportunity to enhance their profit margin. Moreover, in the month of May and June market fundamentals remained moderate in the European market, however the spot market continued to observe slower pace, despite the lower spot price offers, petition from the enterprises remained low. As companies had already procured a substantial amount of the product in the previous month leaded to market saturation. Furthermore, poor demand situation from the major consumers of R-PP such as Textile and packaging industries consequently leaded to low trading activities. Additionally, economic uncertainty and recession fear continued to govern market sentiments. Anyways the price of R-PP - Natural Pellets FD Hamburg during the entire Q2 time period showcased an increment of (1%).
MEA
The Recycled Polypropylene R-PP market continuously follow declining price trajectory throughout the second quarter of 2023, in the beginning of Q2 a generally skeptical market has been created by falling trading activities. The extended weakness in the buyer appetite in the domestic market, as well as in international market with sluggish end-user consumption in the key industry such as Textile and packaging sector, prompted market participants to keep the prices on the weaker side to keep the prices economical. Furthermore, during the last month of Q2, adequate supplies of product in the domestic ports kept the market oversupplied and due to the plentiful availability of the product in the region, despite low demand amid feeble purchasing activities of the material with it Slump in market value of R-PP was observed. Thus, the price of R-PP - Injection Moulding Spot Ex-Riyadh drop to USD 816/MT in the last month of Q2, with an overall decrement of roughly (7.7%) during the entire Q2 time period. As the demand recovery fell short of expectations and Overall consumption of showed a deep contraction and failed to regain momentum.
In the first quarter of 2023, the Recycled Polypropylene market in the Middle-Eastern market observed mixed sentiments. The offers were dropped during the first half of the quarter, followed by the rebound in the second half of the quarter. In the Saudi Arabian market, the offers plunged during the first half of the quarter due to the lacking demand from the prominent markets. There were several inquiries at the staring of the quarter as the Chinese players rushed to restock inventories ahead of the festive season. Whereas the European players are highly cautious about the market developments as the inflation and rising interest rates slowed the market competitiveness. As a ripple effect, the Ex-Riyadh discussions for R-PP were assessed at USD 885 per tonne during the quarter ending March 2023.
Overall the Recycled Propylene market in the APAC region observed a signific improvement during the first quarter of 2023. The offers quoted in the prominent economies observed a consistent surge in the offers quoted in the domestic market. This development is predominantly supported by the rebound in the market activities in China, and the authorities have eased the COVID restrictions followed by the festive season in the region resulting in consistent fluctuation in the market competitiveness amongst the market players. At the same time, the demand outlook has remained healthy and staggered upward slowly. In addition, major Indian market players claimed that the participation of the East Asian players had soared tremendously as the Chinese lunar new year holidays ended. As a ripple effect, the Ex-Shenzhen discussions for Recycled PP injection molding grade were assessed at USD 939 per tonne during the quarter ending March 2023.
In the first quarter of 2023, the Recycled Polypropylene market in the European market has observed a staggering downward trend. Initially, since the quarter started, the market sentiments have remained dull, and the competitiveness amongst the market players has persistently prevailed the impact from the last quarter. At the same time, the market analysts were assured that the upcoming recession, coupled with the instability in the energy market, has weakened the supplier's will to reduce the offers in the domestic market. As a ripple effect, the FD Hamburg discussions for R-PP natural pellets were settled at USD 2020 per tonne during the quarter ending March 2023.
