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.
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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
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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
Updated to Q3 2015
China’s polypropylene (PP) market prices were expected to increase on the back of demand recovery in packaging film in August and September, market sources said.
It was also heard that some local new PP plants were delayed to be started up in 2016, including those of Jiutai Energy, Guangzhou Petrochemical and Changzhou Fund Energy.
Moreover, talk that the Chinese government is expected to stimulate the economy was adding a bullish factor.
European polypropylene (PP) prices are expected to fall in August on eased supply of feedstock propylene and softening demand for PP in summer. PP producers’ healthy margins continues to support the downtrend of PP prices.
Middle East converters are expecting a significant correction of PP in the third quarter of 2015, citing the wide gap between PP and propylene values. Abu Dhabi’s Borouge is also expected to ramp up production of its new PP facility and this will ease supply in the region.
In Turkey, PP demand for fibre grade is weak due to low exports of plastics finished goods during Ramadan in July and the rest of summer holidays as exports to the EU remains slow. PP prices are not expected to increase on weak demand. Stock levels of market players in Turkey are, however, low and tight supply may support a price increase. Price direction in Turkey remains unclear.
China’s PP market prices were expected to increase on the recovery of the film packaging sector. A few new PP plants were delayed to start up in 2016, including Jiutai Energy, Guangzhou Petrochemical and Changzhou Fund Energy.
PP import prices in southeast Asia is expected to stable-to-low on stable supply from Middle East and ASEAN suppliers. No plant shutdowns or turnarounds have been scheduled in the third quarter. Fresh demand after the rainy season will also support the price downtrend to cease.
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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.