During the initial week of March 2024, the United States Polypropylene (PP) market experienced price stability, attributed to a balanced interaction between supply and demand dynamics. Throughout the week, PP prices remained steady as supplies tightened, with the availability of older and cheaper warehouse-reseller resin declining, presenting challenges in sourcing competitively priced material. Consequently, most prime truckload transactions relied on dwindling market-making inventory positions, while producers aimed for modest margin enhancements by maintaining reduced reactor rates. However, on a monthly basis, the USA PP market witnessed a 1.5% cost increase in February 2024, driven by a 4.5% rise in feedstock Propylene prices, which elevated production expenses. Additionally, upstream Crude Oil prices surged by 5%, further contributing to the overall cost increment, exacerbated by increased global freight costs due to the Red Sea crisis.

Similarly in the first week of March 2024, Mexico's PP market demonstrated notable price stability, attributed to careful management of supply and demand. Local traders adopted cautious strategies to mitigate the costs of importing PP, particularly from the United States, ensuring stability. Monthly data revealed a 2% increase in PP prices due to costly imports and heightened domestic demand, exacerbated by surging feedstock Propylene prices, notably in the USA. Additionally, Mexico's manufacturing sector experienced improved operating conditions in February, with sales growth driving output expansion, especially in the downstream automobile industry, maintaining steady demand. Despite consistent domestic supply, persistent supply chain challenges, including highway insecurity, maritime transportation issues, and water shortages, led to notable input cost increases. Mexico's Producer Price Index (PPI) climbed to 1.4% in February 2024, indicating potential inflationary pressures.

During the first week of March 2024, Brazil's PP market also demonstrated notable stability, owing to a well-maintained equilibrium between supply and demand. The consistent pricing trend in the US market significantly influenced Brazil, which heavily relies on PP imports from the USA. Throughout February 2024, PP prices saw an approximately 8% monthly increase, coinciding with a 4.5% rise in global feedstock Propylene prices, impacting production costs and imports to Brazil. the reinstatement of antidumping duties (ADDs) on US polypropylene (PP) by Brazil’s Foreign Trade Chamber (Camex) Executive Management Committee (Gecex) augmented product costs. With higher import costs from the USA due to antidumping duties, Brazilian PP sourced from the USA witnessed price increases. Importers and distributors in Brazil subsequently passed on these elevated costs to consumers, resulting in an overall uptick in PP prices in the Brazilian market.