Polypropylene (PP) export prices in the United States moved lower this week, pressured by persistently weak demand and muted interest from downstream converters. Market participants reported that despite a decline in feedstock costs, expectations of stronger buying activity failed to materialize, leaving the market under renewed pressure.
A source told that both homopolymer and copolymer grades saw spot price declines, with sentiment dampened further by the August settlement of polymer-grade propylene (PGP) contracts. PGP settled at 35.50 cents/lb, down 2.00 cents/lb from July, while chemical-grade propylene was finalized at 34.00 cents/lb. Market players noted that the contract decrease, while significant, was not enough to stimulate fresh demand, as converters continued to work through existing inventories and remained reluctant to commit to additional volumes.
FAS Houston assessments reflected this softer tone. PP copolymer prices were reported at USD 1005–1025/mt, while PP homopolymer prices stood at USD 960–980/mt, both slipping by USD 10/mt compared to the previous week. Sources added that downstream demand for packaging, automotive, and consumer goods has yet to show meaningful recovery, keeping the overall market subdued.
Interestingly, upstream polymer-grade propylene spot prices edged slightly higher on Thursday to 32.00–32.50 cents/lb FOB US Gulf, up by 0.50 cents/lb week on week. However, this small uptick failed to lend much support to polypropylene values, as oversupply and sluggish exports weighed more heavily on sentiment.
Traders and producers alike remarked that without a rebound in global demand, particularly from Latin America and Asia, US PP export prices may continue to face downward pressure in the near term. For now, buyers remain cautious, and the broader market outlook stays bearish as September approaches.
