PP prices climb in June

North American polypropylene resin prices reversed course in June, increasing 2 cents per pound.

Prices for the material had dropped 2 cents in May and 10 cents in April. Those moves, as well as the June increase, matched price changes seen for polymer-grade propylene (PGP) monomer feedstock.

Prior to the April-May price drops, regional PP prices had increased for three consecutive months and six times in the previous seven months. Combined with previous increases and decreases, regional PP prices now are flat so far in 2024.

In a recent report, PP supplier Blue Clover of New York said PGP prices "continue to climb higher" in early July. Officials added that reasons for higher PGP prices include planned maintenance at a PDH process PGP unit operated by Enterprise Petrochemical in Baytown, Texas, as well as possible inventory restocking for hurricane season and better-than-expected demand for PGP derivatives such as PP resin. The Enterprise unit has annual production capacity of almost 1.7 billion pounds of PGP.

Short-term PP supplies also could be affected by temporary shutdowns put in place by Formosa Plastics Corp. USA and other suppliers in advance of Hurricane Beryl, which made landfall July 8 in Matagorda, Texas. Tighter supplies could serve to keep PP prices flat or provide momentum for another price hike.

Blue Clover officials also said they don't believe a 10-cent-per-pound premium for PGP compared with 2022-23 average pricing will hold. "While demand for PP is better than expected, PP producers have been operating at sub-80 percent in an attempt to match production to demand," they added.

"Blue Clover believes the market for PP will get longer at some point over the summer, and that oversupply will push into reduced PGP demand," officials said. "PP days of supply on hand are relatively healthy compared to prior years … [but] it's not the easiest time of year to hold this view."

* source : https://www.plasticsnews.com/resin-pricing/polypropylene-prices-reverse-course-rise-june