The Polypropylene Price Trend changed sharply across global markets during Q2 2026. Polypropylene is widely used in packaging, automotive parts, household products, textiles, medical products, and many everyday plastic applications.
Because of this wide usage, changes in crude oil, propylene, energy, freight, and regional supply can quickly affect buying decisions. During Q2 2026, geopolitical tensions involving the United States, Israel, and Iran, along with concerns around the Strait of Hormuz, created major pressure on energy and petrochemical markets.
Higher crude oil and naphtha costs pushed propylene values higher, while supply limitations made polypropylene more expensive in many regions.
The quarter was unusual because prices did not simply move gradually upward. In many markets, the increase was extremely fast. Buyers who normally planned purchases several weeks ahead had to react more quickly as replacement costs changed.
Producers and distributors also faced higher operating and transportation expenses. As the quarter moved toward June, however, the market started showing signs of correction.
Some buyers reduced procurement after building inventories during the earlier price surge, while feedstock and freight costs began to ease from their highest levels.
Why Did Polypropylene Prices Rise So Sharply?
The main driver behind the Q2 movement was the increase in feedstock costs. Polypropylene production depends heavily on propylene monomer, and propylene is closely connected to the broader oil and petrochemical chain. When crude oil and naphtha prices rise, the cost structure for producing polypropylene can increase as well.
The geopolitical situation made this effect stronger. Concerns about disruptions around the Strait of Hormuz affected the movement of crude oil, petrochemical feedstocks, and finished materials. The region is important for global energy and chemical trade, so even the threat of disruption can influence purchasing decisions.
Supply was another important factor. In the United States, constrained cracker output reduced the availability of propylene. This placed additional pressure on polypropylene production costs. Export demand also competed with domestic requirements, creating a tighter balance between supply and demand.
Europe faced a similar situation, but the impact was compounded by already elevated electricity and natural gas costs. Polypropylene producers in energy-intensive markets had to manage higher costs across several parts of the production chain at the same time.
United States Market
The United States recorded one of the strongest increases during Q2 2026. Homo-polymer injection moulding material increased by about 63% at Houston, while impact copolymer injection moulding material climbed around 61%.
The sharp increase was connected to higher crude oil, naphtha, and propylene costs, combined with constrained domestic production. Limited availability meant that both domestic consumers and exporters were competing for material.
The market remained at very high levels for much of the quarter. However, June brought a noticeable correction of around 14% to 15%. This decline reflected more cautious purchasing behavior after the earlier surge. Buyers became less willing to purchase large volumes at peak prices, while feedstock and offer prices began moving lower.
Mexico and Canada
Mexico also experienced a major increase, with impact copolymer injection moulding material imported into Manzanillo from the United States rising around 58% during Q2 2026.
Higher US export offers were the main factor, but freight costs also played an important role. When shipping costs rise at the same time as the material price, the landed cost for converters can increase much faster than expected. Mexican buyers also had limited alternatives during periods of tight availability.
By June, prices in Mexico had corrected by approximately 13% as US offers and freight costs started to normalize.
Canada recorded a similar pattern. Impact copolymer prices delivered to Montreal increased by around 54% during Q2. Higher feedstock costs at the US origin, combined with cross-border transportation expenses and longer logistics timelines, kept the market firm.
In June, Canadian prices declined by approximately 13%, following the easing of US-origin offers.
European Market: Germany, Belgium and France
Europe experienced some of the largest polypropylene increases during the quarter.
In Germany, homo-polymer injection moulding prices increased by about 77%, while impact copolymer prices climbed around 72% at Hamburg. Higher crude oil, naphtha, and propylene costs created strong upward pressure. At the same time, electricity and natural gas costs added to the production burden.
Belgium recorded an even larger increase. Homo-polymer material rose by approximately 79%, while impact copolymer increased around 73% at Antwerp. The combination of feedstock pressure, energy costs, and supply concerns created an exceptional market environment.
France also recorded a major increase, with homo-polymer prices rising around 76% and impact copolymer prices increasing approximately 70% at Le Havre.
The European market began correcting in June. Germany and Belgium saw declines of around 16% to 17%, while France recorded a correction of approximately 15% to 17%. This change showed how quickly the market can respond when buying interest slows and feedstock pressure starts to decline.
Saudi Arabia and the Middle East
The Saudi Arabian market recorded a more moderate increase compared with North America and Europe. Prices across homo-polymer, impact copolymer, and raffia grades increased by around 41% to 44% at Jeddah.
The region had some protection from its integrated energy and petrochemical structure. Access to crude and propylene helped reduce part of the cost pressure compared with markets that depend more heavily on imported feedstocks.
Even so, the wider geopolitical situation affected export pricing and logistics. By June, Saudi prices declined by around 6%, following the broader global correction.
China Market
China experienced strong increases in both imported and domestic polypropylene markets.
Imported homo-polymer and raffia material from Saudi Arabia into Shanghai increased by around 43%, while impact copolymer rose approximately 40%. Domestic raffia material in Fujian increased by around 34%.
Higher Middle Eastern export offers were passed into the Chinese market, while freight costs added another layer of pressure. Domestic naphtha and propylene costs also increased, supporting the upward movement.
June brought a correction of around 7% for imported material. Domestic Fujian prices were comparatively stable, showing that local supply and demand conditions can behave differently from import markets.
India Market
India was another market where polypropylene recorded a strong increase during Q2 2026. Import-linked material from Saudi Arabia into Nhava Sheva increased by approximately 45% to 48% across several grades.
Higher export offers from the Middle East, combined with freight and logistics costs, pushed landed prices higher. Domestic material in Ahmedabad and western India recorded a more moderate increase of around 28% to 32%.
The June movement was mixed. Import-linked material corrected by around 9% as Middle Eastern offers eased. Domestic prices, however, increased by around 3% to 5% because demand remained firm.
This difference between imported and domestic material is important for buyers. Even when international prices begin falling, domestic markets may not immediately follow if local availability remains tight or demand continues to be strong.
Brazil Market
Brazil also recorded a significant increase during Q2. Homo-polymer material imported into Santos from the United States increased around 61%, while impact copolymer increased approximately 58%.
Higher US export offers were passed into the Brazilian market, while freight and longer logistics routes increased landed costs further. Downstream converters had limited sourcing flexibility, which helped keep prices elevated.
In June, prices corrected by around 13% to 14% as US export offers began easing from their peak levels.
What the Polypropylene Price Chart Shows
The Polypropylene Price Chart for Q2 2026 would show a clear two-stage market. The first stage was a rapid increase across most major markets, driven by feedstock costs, supply restrictions, energy expenses, and logistics pressure. The second stage began in June, when prices started correcting as buying activity became more cautious.
The size of the correction varied by region. North American markets generally recorded declines of around 13% to 15%, while several European markets saw larger corrections of approximately 15% to 17%. Saudi Arabia experienced a smaller decline, while China and India showed different movements between imported and domestic material.
This difference highlights why a global price number is not always enough for procurement planning. Local supply, freight, taxes, currency movements, production economics, and buying patterns can all change the final price.
Polypropylene Price Index and Market Direction
The Polypropylene Price Index for Q2 2026 reflects the exceptional volatility seen across the global market. The index direction was strongly upward during most of the quarter before turning lower in June.
For buyers, the main lesson from the quarter is that feedstock developments need to be monitored together with regional supply. A decline in crude oil does not always translate immediately into lower polypropylene prices. Existing inventories, contracted volumes, freight rates, and producer operating rates can delay the effect.
The same applies in the opposite direction. When propylene availability becomes tight, polypropylene prices can rise rapidly even before downstream demand changes significantly.
Polypropylene Price Trend Forecast
Looking ahead, the Polypropylene Price Trend will likely remain closely connected to crude oil, naphtha, propylene availability, freight costs, and geopolitical developments. The June correction suggests that the extreme Q2 price levels were difficult to maintain once buyers reduced their purchasing activity.
However, the market can remain sensitive to any new disruption in energy or petrochemical logistics. If feedstock supply improves and transportation costs continue to normalize, buyers may gain more room to negotiate. On the other hand, renewed supply interruptions could quickly put pressure on prices again.
Demand will also be important. Packaging remains a major area of polypropylene consumption, while automotive, household goods, appliances, medical applications, and consumer products provide additional demand. If converters return to regular purchasing after reducing inventories, the market could receive fresh support.
The Q2 2026 polypropylene market was defined by a very sharp rise followed by an early correction. The strongest increases were seen in Europe, North America, Brazil, India, China, and other major markets, although the size of the movement differed by region.
The major causes were higher crude oil and naphtha costs, expensive propylene monomer, supply constraints, energy costs, freight increases, and geopolitical uncertainty surrounding the Middle East and the Strait of Hormuz. By June, the situation began to change as buyers became more cautious and feedstock and freight conditions started to normalize.
For manufacturers, distributors, and procurement teams, the Q2 experience shows the importance of monitoring the entire polypropylene value chain rather than focusing only on the finished material. Changes in crude oil, propylene, energy, freight, inventories, and regional demand can all influence purchasing costs.
The coming months will depend on how quickly feedstock markets stabilize, how regional supply develops, and whether downstream demand remains healthy. Regular monitoring of market movements can help buyers understand changing replacement costs and make purchasing decisions with better visibility.
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Price Watch™ is an India-based, independent raw material price reporting agency that provides real-time price forecasts and data-driven insights into global raw material markets. Price Watch™ specializes in tracking raw material prices, analyzing market trends, and delivering timely updates on plant shutdowns, supply disruptions, capacity expansions, and demand-supply dynamics. The Price Watch™ platform empowers manufacturers, traders, and procurement professionals to make faster, smarter decisions. Leveraging AI-powered forecasting and over a decade of historical data, Price Watch™ transforms market volatility into actionable opportunity.
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