U.S. Polypropylene Prices 2025, Size, Trend, Graph, Chart and Forecast
U.S. Polypropylene Prices 2025, Size, Trend, Graph, Chart and Forecast
North America
During Q4 2024, Polypropylene prices in the US market declined by approximately 8%, largely tracking the 20% depreciation in feedstock propylene (Polymer Grade). Weak demand from the construction and downstream automotive industries remained the primary market driver, despite disruptions from the hurricane season, which lasted until November 2024.
A key development was INEOS resuming production in late October 2024, which improved domestic supply and exacerbated bearish market conditions. Price competition from Middle Eastern and Chinese markets further pressured prices downward.
Mid-quarter, labor disputes between the ILWU (International Longshore and Warehouse Union) and USMX (United States Maritime Alliance) led to port congestion, hindering exports as vessels remained backed up. Towards the quarter's end, US suppliers prioritized inventory liquidation to avoid year-end tax implications. The potential for additional labor strikes further strained export conditions, while some producers attempted to extend market length by reducing run rates.
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Europe
The European polypropylene market followed a bearish trend in Q4 2024, with prices dropping approximately 8%. Producers resumed operations post-summer break in October, but demand remained weak, particularly in the construction and automotive sectors.
A significant event was the return of production at Total Energies' facilities in Gonfreville, France, and Feluy, Belgium, with capacities of 230,000 tonnes/year and 850,000 tonnes/year, respectively. These facilities had previously faced force majeures—Gonfreville since January 2024 due to mechanical issues and Feluy since July 2023—adding to supply constraints. Their reactivation contributed to market normalization but reinforced the bearish pricing trend.
Arbitrage opportunities within and beyond Europe remained limited, exacerbating the oversupply situation. Mid-quarter, lower-priced imports from South Korea, China, and the Middle East intensified competition for domestic producers, who responded by lowering run rates. By the quarter's end, destocking efforts continued, with adverse weather conditions in Northwest European ports and ongoing maintenance work further disrupting trading activities. The market remained well-supplied, with producers curbing run rates to manage lengthened market conditions.
Middle East
The Middle Eastern polypropylene market experienced a predominantly bearish Q4 2024, with strong price competition from Chinese and South Korean suppliers. These exporters aggressively shifted inventories to European markets, but security tensions in the Red Sea hampered export logistics, leading to regional inventory accumulation. The weak Turkish lira also discouraged trade with Turkish buyers, further dampening market sentiment.
While healthy domestic consumption at the quarter’s start provided some price stability, the market turned bearish towards year-end as suppliers prioritized inventory liquidation. With arbitrage to Europe closing, Middle Eastern suppliers redirected shipments to India. However, rising price competition from Indian suppliers, who offered discounts on domestic material, forced Middle Eastern traders to explore alternative destinations within the Indian subcontinent, reinforcing bearish market conditions.
South America
In Q4 2024, the South American polypropylene market, particularly in Brazil, saw an 11% price decline. Brazilian polypropylene faced strong competition from South Korean, Chinese, and US suppliers, leading to an influx of lower-priced offers. Chinese and South Korean exporters were particularly aggressive, with China gaining significant market share in Brazil’s imports by November 2024. South Korea remained competitive, benefiting from duty-free exports to Brazil until October 2024.
To counteract this, Braskem, Brazil’s major producer, raised prices twice during the quarter, but these measures failed to reverse the bearish trend. By year-end, Brazilian suppliers sought alternative markets, with some sourcing from Egypt, where tax-exempt imports further enhanced supply conditions for Brazilian traders.
APAC
The APAC polypropylene market exhibited a stable-to-bearish trend in Q4 2024, with prices declining by approximately 1%. China’s continued polypropylene capacity expansions fueled price competition across Asia, alongside aggressive exports from South Korean suppliers. Despite lower PDH rates, declining shipment volumes contributed to inventory accumulation at ports.
Demand remained muted, particularly in the underperforming automotive and construction sectors. Weather-related disruptions, including typhoons in the South China Sea, had minimal impact on polypropylene supply.
As the quarter progressed, inventory liquidation exerted downward pressure on prices. Despite supply disruptions in South Korea, including plant turnarounds and force majeures, China’s polypropylene exports surged by 88% in November 2024, stabilizing intra-Asia freight charges. Nevertheless, the regional market remained oversupplied, with ample inventory circulating across APAC.
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