The impact and development of the Polypropylene scarcity
26. Júl 2021
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.[i]
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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 prices continue to enjoy a short-term upward momentum amid rising feedstock costs, low inventories, logistics disruptions related to trucking distribution and fewer-than-expected material shipments from overseas. Strong demand tied to the need to replenish inventories is likely to support current PP prices in the short term.[ii]
Sources
[i] S&P Global Platts – Polymerscan Volume 44 / Issue 26 / June 30, 2021
[ii] ICIS – Polypropylene Europe price forecast report – Vol 9 No 6 | June 2021 (week 23)