PP Copolymer Outlook

The majority (93%) of PP Copolymer buyers surveyed by Townsend paid more for their resin in March, and market participants are expecting another significant increase for PP prices in April which will likely include margin increases sought by producers. Most US/Canada PP producers – including Formosa, Heartland, ExxonMobil, LyondellBasell, Braskem, Ineos and TotalEnergies – have announced margin increases of between 4.0 and 10.0 cpp for April, with one producer – Formosa – seeking an additional 5.0 cpp increase for May.

According to PMM Editor Terry Bourgeois, “the domestic PP spot market has essentially dried up and producers are opting to export any excess material to regions where normal supply has been cut off due to the global supply disruptions in Asia and the Middle East.  Demand for domestic PP is healthy as buyers – who have adjusted to the new pricing levels – are more concerned about procuring needed material than price; however, as prices continue to rise there is some concern regarding demand destruction, especially for durables applications.”

Plastic Market Monthly North American Price Benchmarks for HDPE, LDPE, LLDPE, PET, PP, PS and PVC publish by the 14th of each month, Global EVA publishes by the 15th. Contact us for more information or to request a complimentary edition.

‍