Polypropylene (PP) prices in the Gulf Cooperation Council (GCC) region remained unchanged this week, with market sentiment balanced but clouded by geopolitical uncertainty.
A regional industry source told that, “Prices of polypropylene stayed steady in the GCC, with fundamentals largely in equilibrium. However, concerns about a possible resurgence of conflict between Israel and Iran have added uncertainty that could influence buyer behaviour in the coming weeks. Although business activity is expected to pick up after the summer break, some buyers may adopt a cautious stance and limit restocking in September due to fears of potential disruptions to trade flows and logistics.”
Market participants noted that PP offers for September are expected to emerge shortly, with suppliers hoping the return from the summer lull will support a modest rebound in demand. Optimism is tempered, however, by the regional geopolitical backdrop, which continues to weigh on procurement decisions. Suppliers are hopeful that a gradual increase in purchasing interest could strengthen local demand, but most remain cautious about predicting a meaningful recovery in the near term.
On the pricing front, PP block copolymer was assessed at USD 980–1020/mt CFR, unchanged from the previous week. Raffia and injection grades held steady at USD 930–990/mt CFR, while PP film and fiber were assessed at USD 960–1030/mt CFR. BOPP prices also rolled over at USD 950–1010/mt CFR.
Globally, propylene prices showed mixed movements across regions. In Asia, values strengthened on the back of tightening supply, particularly from South Korea, where producers have reduced operating rates or diverted material to domestic markets ahead of the autumn turnaround season. The anticipated maintenance shutdowns limited spot availability, keeping sellers cautious and supporting firmer price trends.
In Europe, propylene prices also firmed as cracker operating rates were reduced to manage oversupply, while ongoing operational challenges at the Litvinov cracker further constrained output. Even though spot demand in August was subdued, participants expect activity to improve in September as buyers return from the holiday period.
In contrast, the US propylene market was more mixed. Refinery-grade propylene (RGP) prices gained on stronger railcar trading activity, supported by higher polymer-grade propylene (PGP) values. Pipeline trading remained quiet, but balanced refinery supply and tighter offers kept sentiment firm. PGP spot prices, however, held steady as buyers and sellers waited for clearer direction from contract settlements and downstream polypropylene demand.
The GCC’s unchanged PP market reflects a delicate balance: steady fundamentals and cautious buyers at home, set against a global propylene market increasingly shaped by regional supply disruptions and divergent pricing trends.
