For the Quarter Ending September 2025
North America
鈥� In the USA, the Polypropylene Price Index fell by 3.75% quarter-over-quarter, reflecting ample monomer supply.
鈥� The average Polypropylene price for the quarter was approximately USD 1068.00/MT, reflecting subdued demand conditions.
鈥� Polypropylene Spot Price remained stable as disciplined reactor runs limited prime resin availability and restocking.
鈥� Polypropylene Price Forecast points to modest upside from producer hike announcements offset by demand weakness.
鈥� Polypropylene Production Cost Trend showed limited volatility as propylene and energy costs stabilized despite spikes.
鈥� Polypropylene Demand Outlook remains mixed with automotive, healthcare pockets supporting volumes despite soft packaging demand.
鈥� Polypropylene Price Index weakness driven by ample monomer flows, elevated inventories, and persisting buyer hesitancy.
鈥� Plant outages, Formosa startup, and tariff uncertainty jointly shaped availability and selective export demand patterns.
Why did the price of Polypropylene change in September 2025 in North America?
鈥� Ample polymer-grade propylene supply eased cost pressure, increasing resin availability and softening spot quotations notably.
鈥� Weak packaging and construction offtake constrained procurement even as automotive and healthcare supported niche volumes.
鈥� Unplanned outages tightened regional supplies while new capacity additions and disciplined reactor rates moderated volatility.
APAC
鈥� In Japan, the Polypropylene Price Index fell by 10.9% quarter-over-quarter, reflecting weak demand and liquidation.
鈥� The average Polypropylene price for the quarter was approximately USD 2076.33/MT, reflecting subdued domestic demand.
鈥� Polypropylene Spot Price softened during the quarter as suppliers discounted excess stocks, stimulating buyer interest.
鈥� Polypropylene Price Forecast shows further downside potential near-term as restocking delays and weak exports persist.
鈥� Polypropylene Production Cost Trend remained subdued as lower propylene feedstock prices eased manufacturing cost burdens.
鈥� Polypropylene Demand Outlook remains weak, with construction and export markets underperforming, limiting converter restocking activity.
鈥� Polypropylene Price Index movements reflected cautious FX shifts, quarterly contract settlements, and importers' purchasing hesitation.
鈥� Japanese producers ran curtailed rates while inventory overhang and weak export demand pressured spot liquidity.
Why did the price of Polypropylene change in September 2025 in APAC?
鈥� Ample domestic supply and inventory liquidation created excess availability, reducing spot pricing and market momentum.
鈥� Feedstock propylene eased costs marginally, but monsoon logistics disruptions and FX volatility constrained buyer demand.
鈥� Quarterly contract settlements and hesitant restocking from Southeast Asian importers amplified downside in September pricing.
Europe
鈥� In Germany, the Polypropylene Price Index fell by 6.67% quarter-over-quarter, reflecting reduced demand, ample imports.
鈥� The average Polypropylene price for the quarter was approximately USD 1092.00/MT on FD Hamburg assessments.
鈥� Polypropylene Spot Price softened amid steady Asian and Middle Eastern imports undercutting European-origin offers persistently.
鈥� Polypropylene Production Cost Trend rose as propylene feedstock spikes increased manufacturing costs and narrowed margins.
鈥� Polypropylene Price Forecast shows limited upside near-term, with potential firmness as outages resolve and restocking.
鈥� Polypropylene Demand Outlook remains muted with automotive, construction and packaging sectors showing subdued procurement activity.
鈥� High inventories and port congestion pressured export demand, weighing on regional pricing and supplier leverage.
鈥� Restarted large plants eased tightness, while intermittent outages and Hamburg rail disruptions maintained pricing volatility.
Why did the price of Polypropylene change in September 2025 in Europe?
鈥� European plant restarts increased availability in September, easing tightness and contributing to downward price pressure.
鈥� Seasonal summer lull reduced downstream purchasing, particularly in automotive and construction, weakening demand during September.
鈥� Port disruptions and elevated freight plus propylene feedstock spikes increased logistical costs and pressures overall.
MEA
鈥� In Saudi Arabia, the Polypropylene Price Index fell by 6.77% quarter-over-quarter, reflecting subdued demand and ample supply.
鈥� The average Polypropylene price for the quarter was approximately USD 844/MT, reflecting subdued trading and destocking across suppliers.
鈥� Polypropylene Spot Price softened through September amid persistent exporter competition and balanced inventories across Al Jubail terminals.
鈥� Polypropylene Production Cost Trend remained stable due to steady propylene feedstock costs, limiting upward pressure on producer margins.
鈥� Polypropylene Demand Outlook is muted as converters operate conservatively, keeping the Price Index under continued downward pressure.
鈥� Polypropylene Price Forecast indicates limited near-term upside with potential mild recovery expected during Q4 restocking procurement.
鈥� The Price Index reflects inventory-driven weakness, with subdued export demand from Turkey, Southeast Asia, and Far East offers.
鈥� Major producer ramp-ups and new Jubail capacity additions elevated spot availability, reinforcing downward trajectory in regional Price Index.
Why did the price of Polypropylene change in September 2025 in MEA?
鈥� Weak export demand from Turkey and Southeast Asia reduced offtake, increasing inventories and pressuring regional Polypropylene prices.
鈥� Steady propylene feedstock costs kept production costs stable, limiting supplier incentives to raise Polypropylene offers in September.
鈥� New Jubail capacity and competitive South Korean exports increased spot availability, while seasonal summer restocking remained muted.
South America
鈥� In Brazil, the Polypropylene Price Index rose by 2.46% quarter-over-quarter, driven by freight and sourcing.
鈥� The average Polypropylene price for the quarter was approximately USD 1082.33/MT, tempered by subdued demand.
鈥� Polypropylene Spot Price softened as ample Asian imports pressured sellers, weighing down Polypropylene Price Index.
鈥� Polypropylene Price Forecast shows limited upside near-term as freight dynamics and duties constrain import competitiveness.
鈥� Polypropylene Production Cost Trend rose with higher logistics and energy, squeezing margins for regional converters.
鈥� Polypropylene Demand Outlook remains subdued due to construction and automotive weakness, limiting domestic purchasing activity.
鈥� Colombian and Egyptian imports pressured local offers, constraining restocking while keeping Polypropylene Price Index pressured.
鈥� Major producers rolled over increases, trimmed operating rates, affecting spot liquidity and regional trade flows.
Why did the price of Polypropylene change in September 2025 in South America?
鈥� Elevated freight and shifting imports lowered landed costs, altering sourcing and influencing monthly price direction.
鈥� Antidumping duties increased costs for US and Canadian resin, prompting buyers to seek alternative suppliers.
鈥� Soft downstream demand and destocking reduced immediate purchases, sustaining bearish momentum despite localized supply constraints.
For the Quarter Ending June 2025
North America
鈥� The Polypropylene (PP) spot price decreased听 by approximately 10.9% quarter-over-quarter in Q2 2025, reflected in a declining Price Index
鈥� Low demand conditions from the primary construction, automotive and packaging sector continued to impart a downward pull on the prices
鈥� Procurement activity听 remained as per need only听 basis听 due to lower offtakes from the paints and coating sector听 which kept the听 bearishness听 of the market mostly intact
鈥� Post the tariff fallout, buyers from importing Canadian,听 Mexican and Brazil market continued听 to remain low which caused ample availability of stocks across Texas warehouses
鈥� Low consumer confidence continued to negate demand conditions from the packaging sector
鈥� Sellers mostly听 moved existing inventories at lower prices and converters mostly resorted to drawdown inventories听 from听 existing stock piles
鈥� Polypropylene (PP) prices tracked the quarterly losses in feedstock Propylene (Polymer Grade) which fell by approximately 14% easing production costs
Why did the price of Polypropylene听 change in July 2025 in the US?
鈥� In July 2025, the Price Index of PP was reported to听 increased as听 some buyers seen stocking up inventories ahead听 of the Hurricane season
鈥� Leading manufacturers听 such as听 LyondellBasell and Braskem Americas were reported to have increased their quotations
鈥� Lower run rates听 reported amongst PP manufacturers were reported to have caused a shortfall in July 2025听 in mid-July 2025
Europe
鈥� The Polypropylene (PP) spot price in Europe declined by 6.9% quarter-over-quarter in Q2 2025, reflected in a softer Price Index.
鈥� Lower production costs witnessed as indicated by drop of 14% in the prices of feedstock Propylene.听听
鈥� Low demand conditions from the primary construction sector continued to remain the prime factor for the downward pull on the prices
鈥� Export demand and conditions remained sluggish amidst the Euro appreciation, congestions witnessed across the Northwest European ports which continued to impart a bearish pressure on the prices
鈥� A tiered pricing structure听 remained largely in the European market with European听 produced PP commanding the听 highest prices, Middle East originated cargoes occupying the middle band听 and Asian origin inventories commanding the lowest band as a result Asian and Middle East origin continued to undercut听 European produced PP.
鈥� Supply remained well supported听 despite European PP producers having kept run rates low听 and outages in the听 market, as influx of听 Asian and Middle East inventories听 continued to keep spot availability ample听 in the market听
Why did the price of Polypropylene (PP) change in July 2025 across Europe?
鈥� In July 2025, the Price Index of听 PP was reported to have been stable and unchanged in July 2025.
鈥� Suppliers were to have been moving backlogged inventories at stable prices leading to a broadly stable market fundamentals.
鈥� Market players have mostly expressed pessimism in the demand conditions from the construction industries and in the automotive, packaging and construction sectors
鈥� Market participation from the both the buy and sell-side was reported to have been low amidst seasonal summer holidays
鈥� Domestic producers across the Eurozone were reported to have maintained lower run rates amidst seasonal summer holidays
Middle East听
鈥� The Polypropylene (PP) spot price in Middle East听 declined by 0.5% quarter-over-quarter in Q2 2025, reflected in a softer Price Index.
鈥� Lower production costs witnessed as indicated by drop of 1.8% in the prices of feedstock Propylene.听听
鈥� Low demand conditions from the importing market听 markets such as Europe, Southeast Asia and听 Turkey听 continued to impart a downward pull to the prices
鈥� Export conditions remained unfavourable amidst unfavourable exports amidst renewed听 geo-political conditions and security concerns at The Red Sea听 led听 port inventories being accumulated, resulting in the downward movement听 of the prices
鈥� Middle East originated inventories continued to face competition against the South Korean duty-PP cargoes resulting in prices to witness a downward movement
鈥� Buyers in Turkey remained on the side-line amidst Lira devaluation,听 unfavourable macroeconomic conditions听 and margin squeeze resulting converters operating at low operating rates thus lowering consumption as resulting in lower enquiries to Middle East suppliers听
Why did the price of Polypropylene (PP) change in July 2025 across Middle East?
鈥� In July 2025, the Price Index of听 PP was reported to have declined in July 2025.
鈥� Suppliers were to have been moving backlogged inventories at lower听 prices leading to a broadly bearish market fundamentals.
鈥� Market players from importing countries听 have mostly expressed pessimism in the demand conditions from the construction industries and in the paints and coating sectors
鈥� Import demand from the prime European and Turkish markets remained subdued amidst the seasonal summer holidays.
鈥� PP prices tracked losses in feedstock Propylene prices which were also reported to have fallen in July
APAC
鈥� The Polypropylene Price Index across the APAC region declined by 1.7% quarter-over-quarter in Q2 2025, primarily due to persistent weakness in downstream demand, especially from the construction and packaging sectors, which failed to offer meaningful support to pricing levels.
鈥� Supply-side adjustments such as reduced plant operating rates in South Korea and wider East Asia helped prevent a steeper drop in the Price Index, as lower production volumes and strategic stock clearance efforts by key producers helped maintain overall market balance despite lackluster consumption trends.
鈥� Feedstock Propylene prices declined modestly during the quarter, and while this provided some cost relief to PP producers, the benefits were limited by lower Propane Dehydrogenation (PDH) unit run rates and concerns over reduced feedstock availability, which kept production costs relatively stable.
鈥� Export activity showed signs of improvement during May and June, particularly with increased flows from South Korea to Europe and non-traditional destinations such as Brazil and Turkey, but demand from traditional Southeast Asian importers remained muted due to fiscal year-end transitions and seasonal weather impacts, capping upward price movement.
鈥� Despite isolated demand recovery in the automotive sector, broader downstream demand remained soft, as cautious procurement behavior and weak construction activity across the APAC region weighed on the Polypropylene Price Index throughout the quarter, leading to the observed Q2 price correction.
Why did the price of PP change in July 2025 across APAC?
鈥� In July 2025, the Price Index of 2-Ethylhexanol (2-EH) was reported to have听 increased听 amidst scheduled maintenance turnarounds across South Korea, Taiwan and China
鈥� Lower imports were reported to have been originated from Middle East
鈥� Restocking activity was reported to have been gaining momentum amidst the hurricane season听 being largely witnessed
鈥� APAC-origin PP exports gained traction in global markets such as Latin America and parts of Europe, absorbing surplus cargoes and tightening regional availability. Freight rates remained largely stable, aiding cross-border trade flows without eroding margins.
South America
. The South American PP Price Index registered a marginal 0.1% decline on a quarterly basis, reflecting a stable-to-soft pricing environment driven by cautious procurement behavior and ample inventory availability across the region, especially in Brazil.
. Competitive international offers鈥攑articularly from Thailand, the Middle East, and South Korea鈥攅xerted downward pressure on the Price Index, while Chinese-origin cargoes continued to face resistance due to regulatory and quality concerns despite their pricing advantage.
. Domestic producers such as Braskem implemented upward price revisions during the quarter, but these efforts were largely absorbed by buyer pushback and minimal restocking interest, limiting any sustained bullish impact on the regional Price Index.
. Demand fundamentals remained weak across key downstream sectors; construction activity was restrained by high interest rates and input inflation, while automotive sales saw only intermittent recovery, both of which contributed to the stagnant Price Index movement.
. Supply dynamics were shaped by a combination of steady import inflows, reduced Asian export volumes due to production cuts and geopolitical constraints, and lackluster domestic production, collectively sustaining a tight but balanced market tone across South America.
Why did the price of PP change in July 2025 across South America?
. Tightening Regional Supply: Regional supply tightened due to reduced production rates at key domestic facilities, including Braskem in Brazil, as maintenance activities and high feedstock costs limited output. This coincided with limited availability of imported cargoes, especially from Asia and the Middle East, tightening the market.
. Reduced Import Volumes: Import volumes declined from traditional suppliers such as South Korea and Thailand due to ongoing production curbs and stronger demand in their local and nearby markets, making less volume available for South American buyers and putting upward pressure on prices.
. Improved Demand from Converters: Downstream restocking activity picked up, particularly in the packaging and consumer goods sectors, ahead of seasonal demand in Q3. This improvement in offtake helped support higher transaction levels, driving the price index upward.
. Freight and Currency Volatility: Rising freight costs on transatlantic and intra-Asia鈥搕o鈥揕ATAM routes, coupled with local currency fluctuations (e.g., Brazilian Real depreciation), added cost pressure to landed prices, prompting price hikes from both domestic and import suppliers.
. Stronger Buyer Sentiment: Market participants showed improved sentiment and a willingness to accept higher offers amid tighter inventories, allowing suppliers to push through price increases that lifted the overall regional Price Index by approximately 3% month-on-month in July.
For the Quarter Ending March 2025
North America
The North American polypropylene (PP) market exhibited predominantly bullish conditions during Q1 2025, with prices increasing by approximately 9%. This was driven by production disruptions, force majeures, and adverse weather conditions. In January, production rates remained below 80% due to the shutdown of LyondellBasell's Houston refinery, contributing to tight supply. Spot prices rose 5.5 cents/lb. as panic buying ensued following announced price hikes of USD 66/MT by major producers. Logistics were strained by severe port congestion and warehouse overflows, further tightening supply.听
In February, even as feedstock propylene prices dropped, run rates remained low, sustaining high price levels. Inventory buildup and muted export conditions placed slight downward pressure on prices, although inland trade activity rose. Demand was subdued, with weak consumer confidence and cautious procurement behavior, especially in the packaging and automotive sectors.
March saw continued production discipline, with reactor run rates below 80%. Prime PP remained scarce in the spot market, while propylene prices declined further by 4.3%. Exports stayed weak amid tariff concerns, and domestic demand faltered with declining consumer confidence and spending, leading to moderate overall market activity.
APAC
The APAC Polypropylene (PP) market witnessed a largely stable situation in Q1 2025, with prices fluctuating marginally by around 0.3%, driven by ample supply, cautious demand, and evolving trade dynamics. In January, feedstock propylene prices rose slightly before stabilizing, while container freight rates fell, putting downward pressure on PP import prices. Production in East Asia was subdued, with PDH operating rates dropping to 63.9%. Northeast Asia saw stronger restocking demand ahead of holidays, while Indonesia's market remained cautious amid an anti-dumping investigation initiated by local producer PT Chandra Asri Pacific. February saw continued supply-demand imbalance as Middle Eastern imports faced delays and feedstock costs rose. Maintenance shutdowns in Saudi Arabia limited regional supply. However, buyers remained resistant to price increases due to sufficient inventory levels and subdued end-use demand. Indonesia鈥檚 anti-dumping authority proposed duties of 7.17% on imports from South Korea and Singapore. In March, PP prices came under downward pressure due to ample supply from China, higher PDH operating rates, and weak demand. Although Indonesia imposed 6鈥�8% ADD on Chinese, Korean, and Middle Eastern imports, Ramadan-related business closures and conservative procurement behavior further muted buying interest across the region.
贰耻谤辞辫别听
The European Polypropylene (PP) market experienced a predominantly bullish trend in Q1 2025, with prices rising by 7.6% overall. Prices initially fell by around 2% in early January but rebounded with an 8% surge through February and March, driven mainly by tightening supply and rising feedstock costs. In January, supply was ample due to high inventories and low operating rates (60鈥�65%). Despite a 1.1% rise in propylene prices, demand was weak amidst extended holiday shutdowns, muted automotive and construction activity, and pressure from low-priced imports. Port congestion at major European hubs also disrupted logistics. February saw the beginning of a tighter market as maintenance turnarounds in the Middle East and fewer Asian imports led to limited availability. Producers raised prices by 鈧�70鈥�100/MT, supported by a 4.5% increase in propylene costs. Restocking activity began, but demand remained weak across the use sectors. In March, supply constraints intensified amid rising propylene costs (up 8.5%), low cracker run rates, and ongoing port congestion. Demand remained subdued, with key sectors like construction and automotive underperforming, leaving the bullish pricing trend largely driven by supply-side limitations rather than demand recovery.
South America听
The South American Polypropylene (PP) market witnessed mixed pricing dynamics in Q1 2025, with prices rising by approximately 1.3% in early January but falling around 2.6% in March, resulting in an overall net decline of 1.3% and predominantly bearish market sentiment. In January, Brazilian buyers favored imports from Egypt due to tax advantages, while Chinese exports declined ahead of the Lunar New Year. Supply constraints from the Middle East and subdued Chinese exports lifted prices slightly. Demand improved modestly, especially in automotive and construction sectors, halting the bearish trend temporarily. In February, supply remained ample, buoyed by increased imports from China and South Korea. Braskem maintained stable prices, but declining freight rates and competitive overseas offers limited the scope for price increases. Despite the upcoming supply tightness from Asia and the Middle East, buyer interest remained cautious. By March, prices softened amid improved global supply, a 3.3% drop in North American propylene prices, and sluggish post-holiday demand. Braskem鈥檚 slight price hike had limited impact, as buyer resistance to high prices and availability of competitively priced Asian imports kept the market under pressure.
MEA
The Middle East Polypropylene (PP) market experienced a predominantly bullish trend during Q1 2025, with prices climbing approximately 2.1% over the quarter, driven by supply constraints, maintenance turnarounds, and moderate domestic demand. In January, adverse weather and curtailed production slowed inventory movement across key ports like Jebel Ali, maintaining tight supply conditions. Export interest remained low due to uncompetitive prices compared to Indian and Turkish markets, prompting suppliers to focus on domestic sales. Demand was modest, supported by discounted year-end sales. In February, supply was further constrained due to planned shutdowns at NATPET and PIC facilities, while domestic demand was stable. Stronger packaging sector demand and festive restocking ahead of Ramadan kept the market balanced, although export demand stayed weak, particularly in North Africa and Southeast Asia. By March, limited spot availability, reduced cracker operations, and attempts by producers like SABIC to raise prices led to incremental price increases. Local buyers accepted higher prices amid Ramadan-related delays, while export demand remained soft. Exporters prioritized domestic markets, and sellers achieved better returns in Morocco compared to Egypt, despite pressure from competitive global offers.
For the Quarter Ending December 2024
North America听
During Q4 of 2024, polypropylene prices across the US market were reported to have fallen by approximately 8%. Throughout the entire quarter, the US polypropylene market continued to follow the pricing dynamics of feedstock propylene (Polymer Grade), which depreciated by around 20%. Weak demand from the construction and downstream automotive industries remained the primary driver of the market, despite disruptions caused by the hurricane season, which continued until November 2024.
A notable event was INEOS returning to production in late October 2024, which further improved supplies in the domestic market and exacerbated the already bearish market conditions. The US polypropylene market also faced price competition from the primary Middle Eastern and Chinese markets, which kept prices under downward pressure.
Mid-quarter disruptions due to strikes between ILWU (International Longshore and Warehouse Union) and USMX (United States Maritime Alliance) led to empty accumulation across port terminals, making export conditions less favorable as vessels remained backed up.
Towards the end of the quarter, US suppliers were primarily focused on liquidating inventories to avoid tax repercussions at the end of the year. Export conditions worsened again due to the potential of another strike. With inventory liquidation in full swing, some producers tried to lengthen the market by reducing run rates.
Europe
During Q4 of 2024, the European polypropylene market experienced a bearish trend, with prices falling by approximately 8%. Producers mostly returned to production after the summer break, which ended in October 2024. However, underlying demand conditions remained weak, primarily due to the sluggishness in the key construction and automotive industries.
A notable event during the quarter was the return of production at Total Energies' facilities in Gonfreville, France, and Feluy, Belgium, with polypropylene production capacities of 230,000 tonnes/year and 850,000 tonnes/year, respectively. This further supported the bearish trend. Total Energies had previously declared force majeure for polypropylene deliveries throughout Europe in January 2024 due to mechanical issues at Gonfreville, which compounded supply issues already triggered by force majeure at Feluy since July 2023. With these force majeures lifted, the European polypropylene market began to move toward price normalization.
Arbitrage opportunities within and outside of Europe remained mostly closed, which compounded the already oversupplied market. Additionally, during the middle of the quarter, a proliferation of lower-priced import offers was witnessed, mainly from South Korea, China, and the Middle East. This resulted in price competition for domestic producers. Producers attempted to address this issue by lowering run rates.
Towards the end of the quarter, destocking activities continued, with suppliers focusing on liquidating inventories. Trading activities across inland European regions were disrupted due to unfavorable weather conditions in the Northwest European ports, which were further compounded by maintenance works. By the end of the year, the overarching market fundamentals were largely shaped by producers trying to lengthen the market situation through reduced run rates, with the market being largely supported by ample supplies and limited outages.
Middle East听
The Middle East polypropylene market experienced a predominantly bearish trend during Q4 of 2024. Price competition from the Chinese and South Korean markets remained strong, with suppliers aggressively shifting their inventories to prime European markets. Export conditions were further hindered by security tensions in the Red Sea, resulting in inventory accumulation in the region. Export conditions to the Turkish market were also unfavorable, with the historically weak lira discouraging Middle Eastern suppliers from engaging with Turkish traders, which contributed to the overall weakness in the polypropylene market.
Although healthy domestic consumption at the beginning of the quarter helped stabilize prices, the market shifted to a bearish outlook as the year ended, with suppliers liquidating inventories. With the arbitrage window to Europe closing, suppliers from the Middle East were reported to have redirected supplies to the Indian market.听
However, at the close of the year, intensified price competition from Indian suppliers, who offered discounts on domestic material, put additional pressure on Middle Eastern suppliers, prompting them to divert their cargoes to other parts of the Indian subcontinent. This, in turn, maintained the bearish market conditions.
South America听
The South American polypropylene market, particularly in Brazil, witnessed a predominantly bearish trend during Q4 of 2024, with prices depreciating by approximately 11%. The Brazilian polypropylene market faced continued price competition from suppliers in South Korea, China, and the US, which led to an influx of lower-priced offers from these regions. Chinese and South Korean suppliers were particularly dominant, as their offers remained attractive to Brazilian traders.
Throughout much of the quarter, China's increased polypropylene capacity allowed suppliers from the country to redirect more of their supplies to the South American market, gaining a significant share of Brazil's net imports in November 2024. South Korean suppliers also remained competitive, with duty-free exports to Brazil continuing until October 2024. In an attempt to mitigate this market situation, Braskem, the major Brazilian producer, raised its quotations twice during the quarter, but these efforts were largely unsuccessful in reversing the market trend.
By the end of the year, Brazilian suppliers began exploring alternative markets. Some were reported to have sourced inventories from Egypt, as imports from the region remained exempt from taxes, further improving the supply situation for Brazilian traders.
APAC
The APAC polypropylene market experienced a stable to bearish trend during Q4 of 2024, with prices declining by approximately 1%. The continued expansion of polypropylene capacities in China led to ongoing price competition across the Asian market, alongside aggressive volume pushing by South Korean suppliers. Despite lower PDH rates, the decline in shipments contributed to inventory accumulation across ports in the region.
Demand conditions remained muted, particularly in key sectors such as automotive and construction, which continued to underperform. Weather-related disruptions, such as typhoons in the South China Sea, had minimal significant impact on polypropylene production or supply.
As the year progressed, the liquidation of inventories became a dominant market trend, applying downward pressure on prices. This occurred despite some turnarounds and force majeures in the South Korean market. China, with a reported 88% rise in polypropylene exports in November 2024, continued to push supplies into the Asian market, mitigating fluctuations in intra-Asia freight charges. However, these factors failed to generate significant impacts on market dynamics, with ample supplies circulating across the region.
