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.
For the Quarter Ending December 2023
North America
During the fourth quarter of 2023, the North American Polypropylene Glass Filled Compound (PPGFC) market faced an unexpected downturn characterized by a substantial oversupply of PPGFC within the domestic market and sluggish demand both locally and internationally.
This confluence of factors resulted in a bearish trend in the USA PPGFC market, with low demand from downstream industries and an excess of supply contributing to a prevailing negative market sentiment. The global surge in upstream Crude Oil supply further influenced PPGFC pricing in the U.S., aligning with a broader global trend driven by record production in the U.S., Canada, and Brazil. Concerns about oversupply were compounded by worries about a weakening economy in China, signalling potential market imbalances.
The marginal 0.1% increase in the consumer price index for November and a 3.1% year-on-year rise prompted trader concerns about the Federal Reserve's ability to control inflation. Adding to the challenges, INEOS Group Limited, a major feedstock PP producer in Carson, California, unexpectedly shut down its facility with a production capacity of 19,167 tons per month, impacting the overall market dynamics.
APAC
In the APAC region, the fourth quarter of 2023 for Polypropylene Glass Filled Compound (PPGFC) was characterized by various factors that impacted the market and prices. The top three factors that influenced the market were the overall bullish market sentiment, stable supply, and high demand from the downstream industries. The bullish market sentiment was driven by factors such as the increasing price of feedstock Polypropylene and upstream Crude Oil, which drew investor attention to supply constraints amid ongoing macroeconomic uncertainties. This led to an upward trajectory in prices during the quarter. Supply remained stable throughout the quarter, with no reported material shortages. This stability in supply supported the market dynamics and contributed to the overall price trend of PPGFC. The demand for PPGFC was high from the downstream industries, particularly the automobile sector. Increased consumer spending during the festive season, such as Diwali in India, stimulated automobile sales, resulting in a surge in demand for PPGFC. This strong demand further supported the upward price trend. In India, which experienced significant price changes, the price of PPGFC in the fourth quarter of 2023 was USD 1413/MT. The price trend in India followed the overall bullish sentiment in the APAC region, driven by factors such as increased feedstock prices and strong demand from the automobile industry. Overall, the fourth quarter of 2023 witnessed a bullish market for PPGFC in the APAC region, with stable supply, high demand from the downstream industries, and price increases driven by factors such as feedstock prices and festive season consumer spending. The price of PPGFC in India during this quarter was USD 1413/MT.
Europe
The Polypropylene Glass Filled Compound (PPGFC) market in Europe encountered significant challenges during the last quarter of 2023, characterized by weakened demand and an excess of supply, fostering a bearish sentiment throughout the period. The market continued to grapple with the trend of offloading inventories, as industry players strategically managed stock levels in anticipation of the upcoming winter holidays. Contributing factors to the market dynamics included the prevalence of cheaper imports of PPGFC from overseas, high production costs, and obstacles in trading activities attributed to the winter season. Among European countries, Belgium witnessed the most pronounced shift in prices, experiencing a notable decrease over the quarter. The trend, seasonality, and correlation price percentage in Belgium indicated a stable market situation with a moderate balance between supply and demand. A closer examination of the first and second halves of the quarter in Belgium revealed a decline. In summary, the European PPGFC market navigated challenges stemming from weakened demand, surplus supply, elevated production costs, and seasonal impediments during the final quarter of 2023.
For the Quarter Ending September 2023
North America
The prices of Polypropylene Glass-filled Compounds have shown a fluctuating trend during the quarter after observing sluggishness in the first couple of months. The performance of the construction industry has been unable to recover in the third quarter, and August output for the construction industry has declined further. The housing, commercial, and other construction activities witnessed a decrease in the European nations. Demand from downstream construction and other derivatives has been continually weak, and the demand outlook also appears to be sluggish for the remaining part of the year. In September 2023, the Eurozone Construction PMI showed a marginal increase. However, this uptick still indicated a significant contraction in the construction sector. Meanwhile, the feedstock prices, including Polypropylene, have declined in the quarter and thus had limited cost support for the product. Weak demand persisted, resulting in the fastest decline in new business since May 2020. This led to substantial declines in both activity and input purchases across all construction categories, with house building being the hardest hit. Notably, Germany continued to experience a sharp decline in overall construction activity.
Asia
The Polypropylene Glass Fiber reinforced compound price trend showcased mixed sentiments throughout the quarter in the Asian market. As per the data, prices fluctuated throughout the quarter, demonstrating a consistent fall for the first half of the quarter due to demand dullness owing to the monsoon season in major Asian economies. However, monsoon season started to terminate by the end of the quarter. Thus, consumption improved linearly in the Asian market, helping prices to recover. Further, the rising cost of Polypropylene also supported the overall uptrend during the second half of the quarter, taking a push from escalating global crude oil value. The trajectory of upstream Crude Oil prices remained upward, drawing investor attention to supply constraints amid ongoing macroeconomic uncertainties. Key oil-producing nations, Saudi Arabia and Russia, extended their voluntary oil output reductions by a collective 1.3 million barrels per day until year-end. This decision propelled global crude prices to a 10-month high.
Europe
During the third quarter of 2023, the Polypropylene Glass Filled Compound market in North America displayed a robust performance, primarily driven by the US market. This surge was largely attributed to the increase in the price of the feedstock Polypropylene and the growing demand from the downstream automobile industry. Notably, major global automakers witnessed growth in new vehicle sales during this period, reflecting improvements in supply and strong demand, with limited influence from rising interest rates. However, the automotive sector encountered disruptions in production due to pandemic-related supply chain challenges, particularly in semiconductor chips and other critical raw materials, impacting their ability to meet the rising demand for personal transportation. Towards the end of the quarter, the price of the Polypropylene Glass Filled Compound experienced a rapid increase of more than 3%, primarily due to the sharp uptick in upstream Crude Oil prices. The upward trajectory of Crude Oil prices attracted investor attention, given ongoing macroeconomic uncertainties and concerns about supply constraints. Notably, key oil-producing nations, including Saudi Arabia and Russia, extended their voluntary oil output reductions by a collective 1.3 million barrels per day until year-end. This decision drove global crude prices to a 10-month high earlier in the quarter, highlighting the intricate interplay between the energy market and its impact on the Polypropylene Glass Filled Compound industry in North America.
