For the Quarter Ending December 2024
North America
In Q4 2024, PP glass-filled compound prices in the North American region displayed a mixed trend, shaped by fluctuating supply conditions and demand variations across key sectors. Early in the quarter, steady automotive production and industrial manufacturing activities provided moderate support to prices. However, the overall demand for lightweight components, particularly in the construction and packaging industries, remained underwhelming due to economic uncertainties and stagnant infrastructure projects.
The automotive sector, a significant consumer, contributed to the stable consumption of PP glass-filled compounds, particularly for vehicle light-weighting and durability-enhancing applications. However, broader industrial demand softened, influenced by rising interest rates and cautious procurement strategies among manufacturers. Seasonal restocking in December helped stabilize supply chains, though speculative buying remained subdued.
On the supply side, production rates were steady, supported by efficient manufacturing operations and minimal disruptions. However, rising transportation and raw material costs, combined with potential logistical uncertainties, created headwinds for producers. Despite these challenges, price volatility was limited, reflecting the region’s strong supply chain infrastructure. By the end of Q4, PP glass-filled compound prices faced slight downward pressure, influenced by restrained downstream demand and cost-conscious buyer behavior. Moving into 2025, optimism persists for a gradual recovery, driven by potential growth in automotive production and infrastructure investments.
Asia
In Q4 2024, Polypropylene (PP) glass-filled compound prices in India demonstrated a mixed trend, influenced by ample supply, fluctuating demand, and cost dynamics. Early in the quarter, October prices remained stable, supported by robust production rates and seasonal demand from the Hindu festival season. Automotive sector demand surged, with vehicle sales increasing by 32% year-over-year, bolstered by strong rural demand. Container throughput at Jawaharlal Nehru Port Authority also rose, reflecting improved trade activity. In November, prices increased, driven by higher glass reinforcement costs despite declining polypropylene prices. Stable demand from the automotive and electrical sectors provided market support. However, rising freight rates and logistical inefficiencies added to production costs. Cautious procurement strategies emerged amid mixed economic signals and persistent cost pressures. By December, prices fell, reflecting ample supply and weaker upstream support. The automotive sector continued to underpin demand, especially for SUVs, while other segments like fertilizers and packaging exhibited stable but muted consumption. Seasonal restocking slowed speculative purchases, further weighing on prices. Despite current challenges, the market remains optimistic for a rebound in early 2025, driven by anticipated growth in the automotive and packaging sectors. Overall, Q4 2024 highlighted a balanced yet pressured market, shaped by regional dynamics and evolving demand patterns.
Europe
In Q4 2024, PP glass-filled compound prices in the European region exhibited a steady upward trend, driven by rising input costs, logistical challenges, and selective demand recovery. Supply constraints persisted across the region, exacerbated by disruptions in shipping routes and congestion at major ports like Hamburg. Rising energy prices, particularly in Germany, France, and Spain, further pressured production costs, contributing to price increases. Demand dynamics were mixed, with robust activity from the automotive sector balancing weaker consumption in construction and packaging. Automotive production, focusing on lightweight and durable components, provided a stable demand base for PP glass-filled compounds. Meanwhile, the construction sector faced ongoing challenges due to reduced investments and economic uncertainties, dampening overall market enthusiasm. Seasonal restocking activities and procurement for industrial applications offered limited support, preventing sharp price corrections despite subdued export demand. Processors adopted cautious purchasing strategies, further tempering demand growth. However, tight inventories and elevated production costs maintained upward momentum in pricing. By the end of December, prices stabilized as supply remained balanced and downstream consumption held steady. Moving into early 2025, the European PP glass-filled compound market is expected to remain cautiously optimistic, supported by a gradual recovery in industrial activity and sustained automotive sector demand.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American market for Polypropylene Glass Filled Compounds faced stability in the price adjustments, influenced by several interrelated factors within the broader polypropylene supply chain. Throughout the quarter, prices exhibited a downward trend, largely driven by stable feedstock polypropylene prices.
The Polypropylene market experienced stabilized prices due to moderate demand from key sectors such as automotive and construction. Moreover, unplanned shutdowns at production facilities led to material shortages, further exacerbating the pricing pressure. Additionally, the overall production environment was affected by rising global freight rates, which added to the challenges faced by producers. Despite the ample supply of glass as a filler, the dynamics of the polypropylene market significantly influenced the pricing landscape for Polypropylene Glass Filled Compounds. As the quarter progressed, producers were compelled to navigate these complexities, focusing on managing costs and optimizing supply chain efficiencies.
Overall, the Q3 2024 pricing environment for Polypropylene Glass Filled Compounds in North America was stable, stemming from unchanged feedstock prices, supply chain disruptions, and a softening demand in the downstream markets.
Asia
In Q3 2024, the Polypropylene Glass Filled Compound (PGFC) market in the APAC region experienced a period of marginal price increases driven by various factors. Market prices were influenced by a combination of factors such as heightened demand from key industries, supply chain disruptions, and increased production costs. The tight supply situation, exacerbated by disruptions like severe weather conditions and port congestion, led to a constrained market, pushing prices upwards. Additionally, rising feedstock prices and strong demand from sectors like automotive and construction further contributed to the price surge. India, in particular, witnessed the most substantial price changes during the quarter. The market exhibited a consistent upward trend, with price changes showing a positive correlation with overall market dynamics. Seasonal fluctuations and production challenges played a role in the price volatility. The quarter recorded a 2% increase from the previous quarter, with a 1% price difference between the first and second half of the quarter. The quarter-ending price stood at USD 1491/MT of Polypropylene GF-20% Ex-Mumbai in India, reflecting a persistently increasing pricing environment. Despite disruptions like plant shutdowns, the overall sentiment in the market remained bullish, indicating a positive outlook for the PGFC sector in the region.
Europe
In Q3 2024, the North American market for Polypropylene Glass Filled Compounds (PGFC) experienced a mixed pricing landscape, reflecting a combination of supply constraints, fluctuations in feedstock prices, and demand dynamics. Prices for PGFC saw notable increases, influenced by several key factors, including ongoing maintenance turnarounds and production disruptions within the feedstock Polypropylene segment. These issues contributed to limited supply, which, in turn, led to heightened demand as manufacturers sought to replenish their inventories. The price of feedstock Polypropylene exhibited volatility during the quarter, driven by unplanned shutdowns and force majeure events affecting production facilities. As a result, the available supply of PGFC tightened, leading to increased pricing pressure as downstream industries, particularly those in automotive and construction, aimed to secure necessary materials. In this context, the latest quarter-ending prices for PGFC reflected a clear upward trend, with significant price increments observed across various regions. Moreover, the upstream glass market maintained stable demand, which helped to support price stability despite the prevailing supply challenges. However, the overall sentiment in the PGFC market remained cautious due to weak export fundamentals and continued pressures on supply chains. As the quarter closed, market participants were cautious of potential disruptions caused by global transportation challenges and energy cost fluctuations, which could further impact production rates and pricing dynamics.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Polypropylene Glass Filled Compound (PPGFC) market experienced a notable surge in pricing, driven by supply and demand dynamics, global freight rate fluctuations, and rising feedstock costs. Unplanned plant shutdowns of feedstock Polypropylene among major manufacturers exacerbated supply constraints, while a 1.5% increase in upstream propylene prices elevated production costs, contributing to the bullish market sentiment.
Tight supply was compounded by a significant hike in global freight rates, particularly from Asia to North America, which saw increases upwards of 40%, leading to higher import costs and reinforcing upward pricing pressure. Robust demand from downstream industries, especially the automotive sector with substantial sales growth, also played a pivotal role in driving up PPGFC prices.
In the USA, the most pronounced price changes were observed, with a gradual escalation trend fuelled by seasonal demand shifts, notably the summer surge in automotive manufacturing activities. Compared to Q2 of the previous year, there was a slight overall price decline of 1%, indicating residual impacts from prior market volatilities.
Europe
In Q2 2024, the European PPGFC market experienced a notable price decline driven by a confluence of macroeconomic and sector-specific factors. The reduction in feedstock PP, along with decreased upstream costs for Propylene and Crude Oil, led to lower production expenses and contributed to an oversupply, further suppressing prices. The weakened demand from key downstream sectors, particularly automotive and construction, exacerbated the negative market sentiment. Economic challenges such as reduced consumer spending, high financing costs, and seasonal slowdowns resulted in surplus inventory and intensified competition among suppliers. In Germany, the construction industry saw a significant drop in PPGFC demand, with the Construction Index reflecting contraction due to sharp declines in activity and new orders. The manufacturing index also highlighted an accelerated contraction in new orders, underscoring ongoing difficulties in the sector. Overall, the lower feedstock PP prices were a major factor driving the market during the second quarter of 2024. Moreover, the manufacturing activities in the Eurozone improved and supported the price trend of product in the European region.
APAC
In Q2 2024, the Polypropylene Glass Filled Compound (PPGFC) market in the APAC region saw a steady increase in prices, driven by several key factors. Notably, the demand from downstream industries remained strong, contributing to upward pressure on prices. Major disruptions in the supply chain, including significant plant shutdowns by leading Chinese producers such as Sinopec-SK Wuhan Petrochemical and Ningbo Kingfa Advanced Materials, further exacerbated the situation by constraining supply. Additionally, global freight rates surged, particularly for shipments from Asia, intensifying the supply strain. India, experiencing the most pronounced price changes in the region, saw a notable increase in PPGFC prices. This was driven by robust demand from the automotive sector, active real estate developments, and ongoing government-supported infrastructure projects. Seasonal demand spikes also contributed to the upward price trend. Over the quarter, prices in India rose by 1% from the first to the second half, culminating in a price of USD 1475/MT for Polypropylene GF-20% Ex-Mumbai. This reflects a strong and positive market sentiment, underpinned by significant demand and supply constraints.
For the Quarter Ending March 2024
North America
During Q1 2024, the Polypropylene Glass Filled Compound (PPGFC) market in North America faced a decline in prices primarily due to reduced demand from the automobile industry and competitive pricing of alternative materials. This negative pricing environment was exacerbated by the global economic slowdown and uncertainties related to the Red Sea crisis.
Additionally, the decline in feedstock Polypropylene (PP) prices contributed to the overall bearish trend during this period, with a notable 7% decrease observed between the first and second half of the quarter. Despite the challenging market conditions, there were signs of improvement in the downstream automobile industry. New vehicle sales in the U.S. saw a nearly 5% increase from January through March, indicating consumer resilience in the face of high interest rates.
However, the growth of electric vehicle sales slowed during this period, with mainstream buyers expressing concerns about limited range and the availability of charging stations. Currently, the automotive market is experiencing pressures related to evolving retail dynamics and manufacturer profitability, compounded by increasing inventory levels. This dynamic landscape is keeping dealers vigilant and adaptable in response to changing market conditions. Overall, the Q1 2024 report highlights a complex market scenario for PPGFC in North America, influenced by macroeconomic factors and evolving industry dynamics within the automobile sector.
APAC
In Q1 2024, the Polypropylene Glass Filled Compound (PPGFC) market in the APAC region experienced significant price changes, with India being the most affected. Overall, the pricing environment for PPGFC in the region was negative, with prices declining compared to the previous quarter. Several factors influenced market prices during this quarter. Firstly, there was a decrease in demand for PPGFC, particularly from the downstream automobile industry. This was attributed to a fall in commercial vehicle sales in the Indian market. Additionally, the ongoing geopolitical tensions in the Red Sea region disrupted shipping routes and caused potential bottlenecks in the supply chain, leading to increased shipping costs and limited material availability. In India, the pricing trend for PPGFC was bearish. Despite a 1% rise in feedstock Polypropylene (PP) prices, PPGFC prices decreased by 0.8% in February 2024. This was mainly due to ample material availability within the country and low demand from the downstream automobile industry. However, manufacturing activities in India saw an uptick in February, leading to an increase in demand for raw materials. Looking at the overall trends, PPGFC prices in the APAC region showed a decline compared to the same quarter last year. However, there was a slight increase of 0.7% in December 2023 compared to the previous month. The price comparison between the first and second half of the quarter is not available. In conclusion, the pricing environment for PPGFC in the APAC region, particularly in India, was negative in Q1 2024. Factors such as low demand, limited material availability, and geopolitical tensions contributed to the decline in prices. The quarter-ending price for PPGFC in India was USD 1457/MT.
Europe
During Q1 2024, the European Polypropylene Glass Filled Compound (PPGFC) market experienced a bullish trend as the price of feedstock PP rose due to scarcity in the European region, notably affected by the Red Sea crisis in February 2024. The crisis disrupted supply chains, leading to delayed import arrivals from the Middle East and Asia, directly affecting PP availability in Europe. This scarcity, coupled with global trade uncertainties, exerted upward pressure on PPGFC prices in the region. In February 2024, there was a significant surge in the downstream automobile industry in the EU, with a 10.1% increase in car sales compared to the same period last year. France and Italy led this growth, followed closely by Spain and Germany. This uptick in automotive production likely contributed to increased demand for PPGFC. March 2024 saw a moderation in the inflation rate, signalling stability in overall prices for goods and services. This economic environment positively influenced consumer and industrial confidence, leading to a modest uptick in demand for various goods, including PPGFC, as consumers and businesses felt more secure about spending decisions. Overall, Q1 2024 reflected a dynamic market for PPGFC in Europe, characterized by supply constraints, global market influences, and shifting economic conditions impacting demand trends.
