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The impact and development of the Polypropylene scarcity

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The impact and development of the Polypropylene scarcity

The direct and indirect effects of the global COVID-19 pandemic have shaken up the availability and prices of Polyproplylene (PP) in an unprecedented way. Lockdowns, rising oil prices, record-breaking shipping rates and increasing consumer demand are just a few examples. In order to secure PP granulate and ensure production continuity, our production facilities and production partners in Asia, Europe and Africa are monitoring the PP situation on a daily basis. After having reached an unprecedented high during the first half of 2021, PP prices are expected to return back to normal levels over time. However, uncertainty and volatility will continue to prevail in the near future.

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PP price developments – Asia

  • After reaching an all-time high in the first half of this year, a trend towards stabilisation of Asian PP prices is currently visible.
  • Availability of containers for shipping PP granulate across routes remains an issue, with freight rates rising continuously [1]. This continues to put pressure on downstream plastic goods exporters, impacting the demand for PP granulate [2].

<< Scroll down to read more about European PP price developments >>

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PP price developments – Europe

  • In June 2021, PP prices have reached the highest level seen in the past 15 years (€ 2,020/tonne).
  • European PP supply has remained extremely tight in Q2, with some easing in July as imports began to arrive. However, logistical and transport issues have meant fewer imports than initially expected, and local suppliers’ stocks remain low. [3]
Agri Newsletter Graphs_Europe.png
Sources

[1] S&P Global Platts – Polymerscan Volume 44 / Issue 26 / June 30, 2021

[2] S&P Global Platts – Polymerscan Volume 44 / Issue 33 / August 18, 2021

[3] ICIS – Polypropylene Europe price forecast report – Vol 9 No 8 | August 2021 (week 32)