In the first week of July 2024, the price of Polypropylene (PP) in the US market remained stable, reflecting a balanced demand-supply dynamic. However, on a monthly basis, the price surged by approximately 17.5%, driven by increased production costs due to higher feedstock propylene prices. A regional plant shutdown created a short-term material shortage, further influencing the US PP market. Additionally, rising freight rates impacted the price of PP this month.

Throughout June 2024, the supply of PP in the US fluctuated from moderate to low levels due to a series of unplanned plant shutdowns. Major manufacturers of PP, such as Phillips 66, faced operational disruptions, leading to material shortages. Concurrently, the price of feedstock Propylene increased by approximately 6%, elevating production costs and contributing to a bullish trend in PP prices. These supply challenges were compounded by a significant surge in global freight rates. Container freight rates on key north-south and east-west Brazilian routes soared due to strong demand and capacity shortages for shipments to and from South America. Brazilian forwarders reported that rates from Brazil to North America reached their highest level in a year, while rates on the Asia-East Coast South America trade were at a near two-year high. Local shippers attributed these rate hikes partly to worsening delays at key Brazilian ports, where construction closures overwhelmed other routes. Furthermore, the cost of shipping cargo to Europe and the US increased in June as shipping lines introduced surcharges to cover additional expenses incurred by routing vessels through the Cape of Good Hope, avoiding the Suez Canal due to attacks on ships by Houthi rebels in the region.

Similarly, the Chinese market saw stable PP prices in the first week of July 2024 due to a balanced supply-demand gap. However, on a monthly basis, prices increased by approximately 1.8% due to higher production costs from increased feedstock propylene prices. Over 40 plant shutdowns in China during June 2024 further tightened material supply. Increased freight rates in the Asian market also influenced PP prices. Demand was robust initially, especially in industries such as real estate, but remained weak for pipes. The trading atmosphere was average, with limited new orders and enterprise replenishment operations based mainly on immediate needs. The manufacturing PMI of China's industry was 49.5 percent in June, indicating stability.

Throughout June 2024, the global PP supply fluctuated due to unplanned plant shutdowns by key manufacturers, including Shenhua Coal to Liquid and Chemical Co., Ltd., and others. These disruptions led to PP shortages and increased production costs, with feedstock propylene prices rising by approximately 3.5% in June 2024, contributing to a bullish trend in PP prices. The global freight industry also saw significant rate surges, driven by capacity shortages and market shifts, reminiscent of the pandemic era. Major Asian ports faced congestion, and equipment shortages in China exacerbated the supply-demand imbalance. Despite increased crude oil supply from OPEC, led by Nigeria and Iran, upstream crude oil prices decreased due to flagging demand growth and inventory builds, pointing to a well-supplied market according to the EIA.