US PP imports jump 37% in 2015, exports drop slightly

HOUSTON (ICIS)—A tight US polypropylene (PP) market brought a slight decline in exports during 2015 and prompted a 37% jump in imports, according to government data released this week.

The data from the US International Trade Commission showed that the domestic PP market had less to send overseas during the year and actually had to tap foreign sources to satisfy demand.

The gain in imports, while only a small fraction of total production – about 3% – stems from tight supply in the US for most of 2015.

While US values are higher than in Asia, PP sources say they are importing material not so much to save money but just to get the material they need.

PP imports rose steadily throughout the year as producers saved on manufacturing costs from plunging propylene but extracted more margin from customers in nearly every month.

December imports dropped off from November but still showed a 24% gain over the same month in 2014.

Major North American PP producers include LyondellBasell, ExxonMobil, INEOS, Total, Formosa, Braskem Americas, Pinnacle Polymers, Phillips 66 and Flint Hills Resources.