Polypropylene price index

by | Prices Indexes

Polypropylene price October 2024 and outlook (see chart below)

  • North America:US$1.41/KG, -2.1% down
  • Europe:US$1.57/KG, -1.9% down
  • Northeast Asia:US$1.08/KG, unchanged
  • India:US$1.11/KG, unchanged
The chart below summarizes Polypropylene price trend per region, as well as the outlook. It takes a moment to load.
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Polypropylene (PP) price index

This post is a summary of the global polypropylene (PP) price developments. The price developments of global polypropylene (PP) are expressed in US$ prices converted FX rates applicable at the time when the price was valid. Polypropylene (PP) price index developments are calculated from multiple separate sources of data to ensure statistical accuracy.

The outlook for global polypropylene (PP) prices, on the second tab, is generated from different inputs including:

  • Very recent price developments of immediate cost drivers of global polypropylene (PP) prices
  • Recent price developments of underlying feedstocks which drive the price of polypropylene (PP)
  • Market futures for both cost drives and feedstocks of globalpolypropylene (PP) prices
  • Adjustment of current supply/demand imbalances in the polypropylene (PP) market
  • Longer term trends in likely demand conditions

Further information on the Polypropylene price chart

 

What is Polypropylene (PP)

Polypropylene (PP) is a thermoplastic polymer that is widely used in various applications due to its versatile properties. It is a synthetic resin made from the polymerization of propylene monomers. Polypropylene is a type of plastic that is tough, lightweight, and has a high resistance to heat and chemical solvents. It is also a very cost-effective material.

Polypropylene is used in a wide range of applications, including packaging materials such as containers, bags, and films, as well as in fibers for carpets, upholstery, and clothing. It is also used in the automotive industry for the production of car parts, in the medical industry for the manufacture of medical devices, and in the construction industry for pipes and fittings. Polypropylene is also widely used in 3D printing as a low-cost material.

 

What is PP used for

Polypropylene (PP) is a versatile polymer that is used in a wide range of applications. Some common uses of PP include:

Packaging materials

PP is commonly used to produce containers, bottles, caps, and closures for food and beverages, personal care products, and household chemicals.

Textiles

PP fibers are used to produce clothing, upholstery, and carpets.

Automotive

PP is used to produce car parts, including bumpers, dashboard components, and interior trim.

Medical

PP is used in medical devices such as syringes, IV bags, and surgical instruments.

Construction

PP is used to produce pipes, fittings, and other construction materials due to its durability, strength, and resistance to chemicals and moisture.

Stationery

PP is used to produce a variety of stationery items, including folders, binders, and dividers.

Electrical

PP is used in the production of electrical components such as cable insulation, switches, and sockets.

3D printing

PP is used as a filament in 3D printing, due to its low cost and ease of printing.

These are just some of the many uses of polypropylene. Its versatility and low cost make it a popular choice in many industries.

 

What are the key properties of Polypropylene

Polypropylene (PP) has several key properties that make it a popular choice for industrial use:

High chemical resistance

PP has a high resistance to many chemicals, acids, and alkalis, making it suitable for use in harsh chemical environments.

Lightweight

PP is a lightweight material, which makes it ideal for applications where weight is a concern.

High strength and durability

PP is a strong and durable material that can withstand heavy loads and repeated use.

Low moisture absorption

PP has a low moisture absorption rate, making it resistant to moisture and water damage.

High melting point

PP has a high melting point, making it suitable for use in high-temperature applications.

Flexibility

PP is a flexible material that can be easily molded into different shapes and sizes.

Low cost

PP is a cost-effective material that offers good value for money.

These properties make PP an ideal choice for a wide range of industrial applications, including packaging, textiles, automotive, construction, and medical.

 

How is PP produced

Polypropylene (PP) is typically produced using a polymerization process called “gas-phase polymerization”. The process involves the following steps:

Production of propylene

Propylene is produced through a refining process that separates crude oil into different components.

Polymerization

The propylene gas is then polymerized using a catalyst, which causes the propylene molecules to join together and form long chains.

Cooling and separation

The resulting polymer is then cooled and separated from the unreacted propylene gas and any other byproducts.

Pelletization

The polymer is then pelletized, which involves cutting the polymer into small pellets or beads that are easy to transport and use in manufacturing processes.

Quality control

The pellets are then tested for their properties, such as molecular weight, melt flow rate, and density, to ensure they meet the required specifications for their intended applications.

The gas-phase polymerization process is preferred for producing PP because it is cost-effective, environmentally friendly, and can produce high-quality polymer with good control over the molecular weight and other properties.

 

What drives the cost of PP

The cost of polypropylene (PP) is affected by a range of factors, including:

Raw material costs

The cost of propylene, the primary raw material used in the production of PP, can fluctuate based on supply and demand and other market factors.

Production capacity

The production capacity of PP can affect the cost, with higher production capacity leading to lower costs due to economies of scale.

Energy costs

The cost of energy used in the production of PP, such as natural gas and electricity, can have a significant impact on the overall cost of the polymer.

Labor costs

Labor costs, including wages and benefits, can affect the cost of producing PP.

Transportation costs

The cost of transporting the PP pellets from the production site to the end-users can affect the overall cost.

Regulatory requirements

Regulatory requirements, such as environmental regulations, can increase production costs and affect the price of PP.

Overall, the cost of PP is influenced by a complex set of factors, including both supply and demand factors, as well as costs associated with raw materials, production, and transportation.

 

Market information on polypropylene

The global polypropylene (PP) market is large and growing. According to a report by Mordor Intelligence, the global PP market was valued at approximately USD 110.3 billion in 2020 and is expected to reach USD 157.8 billion by 2026, growing at a compound annual growth rate (CAGR) of around 6% during the forecast period.

The demand for PP is driven by its versatility and low cost, making it a popular choice in many industries, including packaging, textiles, automotive, construction, and medical. The increasing demand for sustainable packaging solutions and the growth of the e-commerce industry are expected to further drive the demand for PP.

The Asia-Pacific region is the largest market for PP, accounting for a significant share of the global demand. This is due to the high demand from the packaging, automotive, and construction industries in the region. Other key markets for PP include Europe and North America.

According to https://oec.world/ :  Polypropylene are the world’s 104th most traded product.

In 2020, the top exporters of Polypropylene were Saudi Arabia ($4.85B), South Korea ($1.97B), Germany ($1.45B), United States ($1.42B), and United Arab Emirates ($1.11B).

In 2020, the top importers of Polypropylene were China ($3.92B), Turkey ($2.02B), Vietnam ($1.12B), Italy ($1.04B), and Germany ($899M).

 

Which countries produce the most PP

The production of polypropylene (PP) is a global industry, with many countries producing this versatile polymer. According to the latest available data from the International Trade Centre, the top 10 PP producing countries in the world in 2020 were:

  1. China
  2. United States
  3. Germany
  4. Saudi Arabia
  5. Belgium
  6. South Korea
  7. Japan
  8. Thailand
  9. Russia
  10. Taiwan

China is the world’s largest producer of PP, accounting for over 30% of the global production in 2020. The United States and Germany are the second and third largest producers respectively. Other countries in the top 10 include major chemical-producing nations in Europe, Asia, and the Middle East.

The production of PP is driven by demand from a range of industries, including packaging, textiles, automotive, construction, and medical. The availability of raw materials, energy costs, and other factors also play a role in determining the production levels in different countries.

 

Further information

 

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