Propylene (Polymer Grade) Price Trend and Forecast

Propylene (Polymer Grade) Regional Price Overview

Get the latest insights on price movement and trend analysis of Propylene (Polymer Grade) in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Propylene (Polymer Grade) Price Trend for the First Half of 2024

Asia

In the Asian market, propylene (polymer grade) prices exhibited a stable yet compact trajectory in the first quarter. Initially, growing demand and rising crude oil prices contributed to a slight upward movement. However, as demand did not sustain its early momentum, prices began to decline towards the latter part of the quarter. The Indian market, in particular, reflected this stability, with prices fluctuating within a narrow range, suggesting a balanced supply-demand equilibrium. Moving into the second quarter, China's propylene (polymer grade) market faced more pronounced fluctuations, though it generally followed a declining trend.
 

Propylene (Polymer Grade) Price Chart

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Early April saw a brief price increase as buyers capitalized on low prices, but this was short-lived as demand weakened. Despite a temporary uptick in demand ahead of May Day, the market ultimately stabilized at lower price levels, with expectations of further declines if prices rose too high. In contrast, India's propylene (polymer grade) market remained resilient, with prices continuing to fluctuate within a narrow range, supported by steady demand and a positive outlook in downstream industries.

Europe

In Europe, the propylene (polymer grade) market mirrored the buoyancy observed in Asia during the first quarter but with distinct regional challenges. Initially, low customer interest led to price cuts, but rising energy and fuel costs soon reversed this trend, causing prices to fall again later in the quarter. The geopolitical and geoeconomic complexities of the region further dampened market activity, resulting in an overall dormant price trend.

The second quarter saw a more pronounced downturn in the European propylene (polymer grade) market, driven by weaker-than-expected demand and oversupply. The anticipated post-Easter surge in demand, particularly from the beverage bottling sector, did not materialize, leading to significant price drops. Converters remained cautious, purchasing only as needed, which further weakened demand.

The oversupply created a buyer's market, pressuring producers and eroding profit margins. Even though declining crude oil prices provided some relief through lower feedstock costs, this was insufficient to reverse the downward trend. Despite logistical challenges like bad weather and port disruptions, major ports continued efficient operations, preventing any significant price rebound.

North America

In North America, the propylene (polymer grade) market followed trends similar to those in Asia and Europe, with prices trending downwards. The primary driver of this decline was weak downstream demand, which kept prices subdued throughout the second quarter. The market was further impacted by an oversupply of propylene (polymer grade) and falling production costs.

Additionally, the depreciation of the US dollar against Asian currencies reduced export profit margins, contributing to the overall sluggish momentum of the propylene (polymer grade) market. The combination of these factors kept prices on the lower end of the spectrum, reflecting the broader regional challenges and market conditions during this period.

Analyst Insight

According to Procurement Resource, the price of Propylene (Polymer Grade) is estimated to oscillate in a narrow range with some slight upticks as per the global trading sector anticipates a slow and gradual recovery of downstream procurement rates.
 

Propylene (Polymer Grade) Price Trend for the Second Half of 2023

The price trends for propylene (polymer grade) were observed to be fluctuating throughout the said period of H2’23. Polymer-grade propylene prices were majorly influenced by the feedstock naphtha prices and the consumption from the downstream polymer industry.

In the Chinese market, the prices first started inclining at the beginning of the third quarter in July’23 but started on a reverse trajectory very soon after that. However, the fourth quarter again saw improved prices as the holiday seasons boosted international consumption and the freight issues made it difficult to procure normally.

The European and American markets, on the other hand, were more muted in comparison. Prices there succumbed to a dull industrial output. The polymer industry’s performance had borderline stagnancy as various geopolitical issues were disturbing the trade fundamentals. Further, a swift decline in crude oil prices in the fourth quarter also pushed the price graph downwards a little.

Analyst Insight

According to Procurement Resource, apart from the Asian Propylene market, all other major markets are projecting uncertainty over upcoming price situations. Prices are expected to continue varying in the coming months as well.
 

Propylene (Polymer Grade) Price Trend for the First Half of 2023

The price trend for polymer grade propylene fluctuated throughout the first half of 2023. The prices were mostly driven by the downstream demands from the chemical and plastics industries. The market started slow at the beginning of the first quarter but soon picked up the pace as the inventories started dwindling with high offtakes.

Hence, an upward fluctuation was observed in the market behavior from the second half of the first quarter, and these high-wavering patterns continued for the rest of the said period. A market revival in China after the reopening of trade activities in the post-lockdown era and a price normalization in the European region after the economic situations started settling aided the propylene (polymer grade) prices. Overall, a mixed price trend was observed for polymer grade propylene throughout the said period.

Analyst Insight

According to Procurement Resource, the price trend of Propylene (Polymer Grade) are expected to fluctuate in the upcoming quarter, given the volatilities in the downstream market and rising inflation rates.

Procurement Resource provides latest prices of Propylene (Polymer Grade). Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.