Global Polymers Market Update – C-MACC/PXi Polymer Price Service Benefits Evident At NPE!

Key Findings

General Thoughts: The C-MACC/PXi polymer price service was created to provide more clarity into transacted prices – confusion surrounding the US PE market and April contract settlements show the need for our service!
Supply Chain/Commodities: US spot polypropylene (PP) prices have trended lower relative to Europe and Asia in 2Q24 – we discuss our expectation for downward pressure on US (and global) PP spot prices into 2H24.
Energy/Upstream: We discuss weakness in US propane prices relative to US natural gas and ethane, which alongside lower oil prices and elevated RGP splitter economics, suggests propylene price weakness ahead.
Recycled/Renewable Polymers: We discuss PureCycle 1Q24 results and its PP recycled product market view, which also highlights estimates for prices and market potential – we remain skeptical of its economic model.
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) prices have fallen YTD to reflect levels much closer to Asia than Europe.