Polypropylene (PP) prices across Latin America drifted lower this week, pressured by declining freight costs from Asia and competitive offers from suppliers in China and the Middle East. The arrival of attractively priced cargoes eroded sentiment across Brazil, Mercosur, and the West Coast of South America, leaving regional producers facing intensifying competition and subdued downstream demand.
A regional market participant told, “CFR Brazil prices for polypropylene decreased, influenced by falling freight costs from China and the presence of competitive offers from Asia and the Middle East. Many buyers saw this as a window to secure cargoes before freight rates possibly rise in September ahead of China’s October holidays.” Despite the influx of Chinese-origin cargoes, participants noted that duty-exempt sources such as Egypt, Israel, and Mercosur countries remained particularly attractive, with Egyptian volumes often ranking among the most competitive after accounting for tariff exemptions.
In Brazil, CFR PP homopolymer fell to USD 960–980/mt, down USD 30/mt week-on-week, while copolymer slipped USD 20/mt to USD 1,020–1,050/mt. Domestic prices from Braskem were reported steady, though buyers said they remained uncompetitive compared with imports following earlier price hikes this year.
In West Coast South America, CFR PP homopolymer was assessed at USD 960–990/mt and copolymer at USD 1,020–1,050/mt, both down USD 10/mt. Sources highlighted that competitive Chinese shipments continue to set the price floor for negotiations, with weak downstream consumption limiting larger-volume transactions. While some participants anticipate a possible stabilization in September if freight rates rise, others argue that fragile fundamentals and oversupply will restrict any meaningful rebound.
Mercosur markets also weakened, with homopolymer at USD 1,030–1,060/mt, down USD 10/mt, and copolymer at USD 1,080–1,120/mt, down USD 20/mt. Market watchers said Chinese-origin material remains a decisive factor, while regional producers in Colombia, Argentina, Brazil, and Chile struggle to defend margins against cheaper imports and increasing competition within the bloc.
Upstream, polymer-grade propylene in the US Gulf held steady at 31.50–32.00 cents/lb FOB. US export PP prices also rolled over, with FAS Houston homopolymer at USD 970–990/mt and copolymer at USD 1,015–1,035/mt.
The combination of falling freight rates, aggressive Chinese offers, and sluggish demand continues to define Latin America’s PP market, leaving participants wary of further declines unless logistical costs shift upward in the coming weeks.
