Polypropylene Prices, markets & analysis
If you buy or sell Polypropylene or related products, you need up-to-date global pricing data and the background information to help you understand it.
Our network of price reporters across Asia, Europe and the US enables us to deliver this. We publish their insights in our comprehensive daily and weekly price reports, plus we offer in depth Polypropylene news and analysis you need to put pricing information into context.
Polypropylene overview Transcript
Polypropylene or PP is a thermoplastic material that is mainly sold in resin pellets to processors who then shape it into a wide variety of products including car bumpers, oil containment booms and medicine caps.
US polypropylene has major end markets in automotive manufacturing and rigid packaging.
Some lower margin applications such as film and carpet have been largely outsourced from the US.
Most domestic contracts are linked to monomer benchmarks, so propylene market fluctuations are the main drivers of polypropylene contract prices.
In the recent years it has become more common for propylene shortages to cause rapid fluctuations in pricing for polypropylene and its feedstock.
The US polypropylene industry used to serve as a dependable export supplier to the world, but with the relatively high cost structure of feedstock, North America has become a more regional market.
How we can help
Polypropylene news and market information products from ICIS
We offer the following regional Polypropylene analysis and news coverage to keep you informed of factors and developments affecting prices in the Polypropylene marketplace.
Price Reporting – More information about the price reports we publish on Polypropylene
Independent price assessments and market coverage by region
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Price History – More information about the historical price data we publish on Polypropylene
Track historical price data
Other types of reports we cover for Polypropylene
Use margin reports to assess the profitability of commodities
News & analysis
News & Analysis - News & market analysis specifically relating to Polypropylene
Breaking news of latest developments affecting the markets.
Insight and analysis of factors driving prices.
Polypropylene: Market overview
Asia’s polypropylene (PP) market outlook in January-February is widely perceived to be bearish on expectations of a slowdown in downstream demand and an increase in local supply in the key China market, but it was too early to gauge the price direction in March, industry sources said.
European PP availability is relatively tight because of production issues and cracker cutbacks that have affected propylene supply more than ethylene. Prices are expected to increase in January, to at least cover the €20/tonne increase in the January propylene contract, but also because of the 3.5% import duty increase that was imposed on GCC imports on 1 January 2014.
US PP prices are expected to rise in January, with participants anticipating an increase of as much as 7.5 cents/lb to match the most recent nomination for January polymer-grade propylene. Additional increases are expected later in the first quarter ahead of planned cracker turnarounds, and buyers and suppliers are anticipating some growth during the first quarter.
In Latin America, availability of raw materials will continue to be the key for PP production in the first quarter of 2014. There is no new production capacity coming online until at least 2017. PP imports from the US Gulf, the Middle East and Asia will continue to play a role in Latin America in the short term, until some of the projects floating in the region come off the ground.
Updated to mid-Jan 2014
News & analysis
Polypropylene news & analysis
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Polypropylene Asia Margin Report Methodology
Polypropylene China Margin Report Methodology
Polypropylene Europe Margin Report Methodology
Polypropylene Europe price forecast methodology
Polypropylene US Margin Report methodology
Polypropylene US price forecast methodology
Polypropylene (PP) is a colourless, translucent to transparent solid with a glossy surface. It has good resistance to acids, alkalis, inorganic chemicals and organic chemicals with the exception of hydrocarbons and chlorinated compounds.
It has improved impact strength, a higher softening point, lower density, better stress cracking and more scratch resistance than other polyolefins. However, a disadvantage of this polymer is its brittleness at low temperatures.
Polypropylene was first produced in a slurry process using Ziegler-Natta catalysts. Bulk phase technologies were then developed while higher activity catalysts enabled gas phase processes to be used. A combination of bulk phase tubular and gas phase reactors has become a popular process.
PP has key applications in packaging, fibres and automotive parts. PP can be extruded for pipe, conduit, wire and cable, while atactic PP has outlets in paper laminating, sealants and adhesives.