Global Polymer Bi-Weekly Report
Global Polymer Market Update – US PP Price Premium Favors Production & Trough Ahead
Key Findings:
- General Thoughts: US polypropylene (PP) spot price support relative to Europe and Asia is due to upstream outages and production cuts – a near-term plus for integrated beneficiaries but also ensures a supply response.
- Supply Chain/Commodities: We discuss US-integrated PP, PVC, and PE production economics, flagging the relative rise in PP profitability, and comment on PP-to-polymer-grade-propylene (PGP) spreads by region.
- Energy/Upstream: We discuss ethylene production costs based on propane relative to ethane, with elevated propylene values in mind, PDH profitability trends by major region, and the surge in RGP-to-PGP spreads.
- Recycled/Renewable Polymers: We discuss renewable/recycled polymer producer equity market trends, which show a loss of faith, and display a production flow chart for r-PP and broadly frame this global market.
- Downstream/Other Chemicals: We highlight major polypropylene (PP) end-market uses, which notably target durable goods, and its more notable exposure in automotive applications as compared to PE, PVC and PS.
Exhibit 1: US spot polypropylene (PP) is the only regional polymer up relative to 2023 and 2019 (Pre-COVID).
Source: Bloomberg, C-MACC Analysis, January 2024
See PDF below for all charts, tables and diagrams
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