For the Quarter Ending September 2024
North America
In Q3 2024, the Recycled Polypropylene (R-PP) market in North America faced a challenging environment, characterized by declining prices and subdued market activity. The market's downward trend was driven by reduced demand from key industries such as packaging and consumer goods, which traditionally absorb significant volumes of R-PP. This decrease in demand came amidst a backdrop of sufficient supply levels, with recyclers and manufacturers maintaining high inventory stocks. This surplus, coupled with competitive pressures from virgin polypropylene, contributed to the challenging market conditions.
The U.S. market, in particular, reflected the broader regional trends, with notable adjustments in pricing dynamics. Competition from lower-priced virgin polypropylene influenced the market, prompting R-PP suppliers to adopt competitive pricing strategies to maintain market share. Additionally, the impact of global trade uncertainties, including fluctuating export volumes, influenced the overall flow of recycled materials. Despite the stability in supply chains, the economic challenges faced by manufacturers led to cautious inventory management, further dampening the market outlook.
As Q3 drew to a close, the R-PP market in North America remained under pressure, reflecting the ongoing struggles with balancing supply and demand. The lack of significant recovery in consumption trends kept prices in check, emphasizing the need for improved demand conditions to support price stabilization. Overall, the quarter highlighted the difficulties recyclers faced in maintaining profitability amidst rising production costs and a competitive market landscape. This period underscored the importance of strategic planning in adapting to the evolving market dynamics and demand fluctuations in the R-PP sector.
APAC
In Q3 2024, the Recycled Polypropylene (R-PP) market in the APAC region faced a challenging environment characterized by declining prices. The decrease was influenced by multiple factors, including subdued demand from key industries like packaging and construction, which traditionally drive R-PP consumption. Additionally, the market faced competition from cheaper virgin polypropylene, further adding pressure on prices. This oversupply, combined with reduced purchasing activities, contributed to the negative sentiment throughout the quarter. China, being a significant market within the region, experienced notable fluctuations during this period, with prices reflecting broader regional trends. While the market showed a slight increase in July, the latter part of the quarter saw a consistent downward adjustment. Seasonal variations and cautious market behaviors among buyers further influenced this trend, leading to softer demand conditions. As Q3 drew to a close, the market for R-PP Injection Moulding grade on an FOB Shenzhen basis settled at 755 USD/MT, indicating a softening of prices compared to earlier in the quarter. The overall market conditions remained challenging, highlighting the ongoing struggle to balance supply and demand amidst competitive pricing strategies and fluctuating demand patterns.
Europe
In Q3 2024, the Recycled Polypropylene (R-PP) market in Europe experienced a steady uptrend in prices, supported by several key factors. Robust demand from industries like packaging and automotive continued to drive consumption, leading to increased pricing pressure. Additionally, constraints in the supply chain and rising production costs, including higher energy expenses, further bolstered the upward pricing trend across the region. Germany, a significant market for R-PP in Europe, saw the most notable price adjustments, reflecting the broader regional trend. The post-summer season brought about a rise in industrial activity, contributing to heightened demand and a corresponding increase in prices. The consistent price growth throughout the quarter underscored the region’s resilience amid fluctuating supply conditions. As Q3 drew to a close, the market for R-PP Natural Pellets FD Hamburg in Germany settled at 1,856 USD/MT, highlighting the sustained bullish sentiment. The quarter demonstrated the market’s ability to adapt to evolving conditions, with demand recovery playing a crucial role in maintaining positive price movements. The overall trend in Q3 2024 emphasized the balance between steady consumption patterns and constrained supply levels, positioning the market for potential growth in subsequent periods.
MEA
In Q3 2024, the Recycled Polypropylene (R-PP) market in the MEA region faced a challenging environment, characterized by a consistent decrease in prices. This downward trajectory was influenced by several key factors, including stable production levels, weaker demand from major sectors like packaging and automotive, and increased competition from virgin polypropylene alternatives. The market’s negative sentiment was further exacerbated by a slowdown in global economic conditions, leading to reduced international orders and a surplus in supply over demand. Saudi Arabia, in particular, reflected the region's overall pricing dynamics, with notable price adjustments throughout the quarter. The country saw a gradual decline, particularly in the latter half of the quarter, as seasonal demand patterns waned. This resulted in a softer market environment, with a focus on stabilizing prices amidst lower trading volumes. By the end of Q3, R-PP Injection Moulding Spot prices in Saudi Arabia settled at 728 USD/MT on Ex-Riyadh basis. The persistent decline highlighted the challenges in achieving a balanced market, underscoring the need for demand recovery to support a more stable pricing outlook in the future.
For the Quarter Ending June 2024
North America
In Q2 2024, the pricing environment for Recycled Polypropylene (R-PP) in North America demonstrated notable stability. This quarter exemplified a balance in supply-demand dynamics, primarily due to consistent availability of raw materials and steady demand from key downstream sectors such as packaging, construction, and automotive.
Despite moderate supply constraints impacting the broader region, enhanced recycling efforts and stable upstream prices for virgin PP contributed to maintaining price equilibrium. Focusing specifically on the USA, where the most significant price fluctuations were observed, the overall market sentiment remained stable. The trends indicated a robust demand from sectors prioritizing sustainable materials, which sustained R-PP prices. Seasonality factors such as increased demand during peak summer sales were offset by efficient supply chain operations, ensuring no drastic price changes. This quarter’s pricing stability starkly contrasts with the same quarter last year, which saw a substantial decline, attributed to previous market volatilities.
Compared to the previous quarter of 2024, the market conditions showed improvement, reflecting sustained demand and balanced supply dynamics. The comparison between the first and second halves of Q2 2024 revealed no significant price difference, underscoring the stable market conditions. Overall, the pricing environment for R-PP in the USA during this quarter has been stable, driven by balanced supply-demand dynamics and supportive market conditions.
APAC
In Q2 2024, the Recycled Polypropylene (R-PP) market in the APAC region experienced notable price increases, driven primarily by strong demand from key sectors such as packaging and automotive, along with supply chain constraints. The emphasis on sustainability and eco-friendly materials heightened R-PP's appeal, contributing to intensified market activity. Additionally, logistical challenges and rising transportation costs played a crucial role in the upward pricing pressure. The cautious sentiment in the market, with stakeholders closely monitoring inventory levels, further compounded the supply-demand imbalance, sustaining elevated prices. Focusing exclusively on China, the market exhibited pronounced bullish trends, driven by robust demand and constrained supply. Seasonal factors, including heightened procurement activities in preparation for summer sales, significantly influenced price volatility. The observed price changes were correlated with increased industrial activity and stable upstream costs for virgin polypropylene. Compared to the same quarter last year, prices were down significantly, reflecting a correction from previously inflated levels. However, the quarter-to-quarter change from Q1 2024 indicated a moderate 1.7% decline, highlighting a stabilization phase within an overall increasing trend. Price comparison between the first and second half of the quarter showed 8.22% rise, evidencing the accelerating demand towards the latter part of the period. Concluding Q2 2024, the latest quarter-ending price for R-PP in China stood at USD 790/MT for injection moulding on FOB Shenzhen basis. This quarter has been characterized by a predominantly positive pricing environment, underpinned by strong demand dynamics and constrained supply channels, reinforcing the upward sentiment in the R-PP market.
Europe
In the second quarter of 2024, the European Recycled Polypropylene (R-PP) market experienced a notable uptick in pricing, buoyed by several key factors. Increased demand from the automotive, packaging, and construction sectors drove this upward momentum, as industries leaned towards sustainable materials. Regulatory pressures advocating for recycled content in manufacturing further amplified demand. Concurrently, supply constraints exacerbated by logistical challenges and limited availability of post-consumer and post-industrial PP waste tightened the market. Rising transportation and logistics costs compounded these factors, exerting additional upward pressure on prices. Focusing on Germany, which witnessed the most significant price fluctuations, the overall trend was bullish. Seasonality played a role, with the peak summer period spurring heightened activity in the packaging industry. The price of R-PP rose by 8.2% compared to the previous quarter, underscoring a robust demand-supply dynamic. However, it's worth noting a substantial decline from the same quarter last year, indicating a complex interplay of market forces over an extended period. Within the quarter, the first and second half showed a 2.1% price differential, reflecting a steady demand trajectory. The quarter concluded with R-PP - Natural Pellets priced at USD 1,820/MT on an FD Hamburg basis in Germany. This consistent increase in pricing illustrates a positive and bullish market sentiment, driven primarily by robust demand and constrained supply, signalling a favourable pricing environment for recycled polypropylene.
MEA
In Q2 2024, the Recycled Polypropylene (R-PP) market in the Middle East and Africa (MEA) region experienced a notable decline in prices, influenced by a confluence of pivotal factors. The overarching market sentiment remained bearish due to an oversupply situation arising from aggressive production and recycling efforts that exceeded the moderate demand from key sectors such as packaging, construction, and consumer goods. In Saudi Arabia, which witnessed the most significant price fluctuations, the downward trend was particularly pronounced. Seasonality played a crucial role, with demand typically subdued in certain periods, leading to heightened inventory levels. The correlation between supply excess and price adjustments was evident, as the market grappled with an abundant supply of post-consumer materials. Compared to the same quarter last year, prices fell significantly, reflecting the sustained negative sentiment. From the previous quarter in 2024, there was a modest increase of 2.44%, which was short-lived as the second quarter progressed. The price comparison between the first and second half of Q2 2024 showed a 2.64% decline, underscoring the persistent downward pressure. By the end of the quarter, the price of R-PP Injection Moulding Spot Ex-Riyadh in Saudi Arabia settled at USD 775/MT, epitomizing the overall negative pricing environment. This consistent decrease highlights the challenges faced by the market, driven by oversupply and tepid downstream demand, overshadowing any short-term gains experienced earlier in the year.
For the Quarter Ending March 2024
North America
In North America, the Recycled Polypropylene (R-PP) market reflected a pattern of progressive strengthening throughout the first quarter of 2024. Initiating the quarter with a cautious yet steady demand, the prices remained on par with the global market trends.
However, as the quarter unfolded, the North American market experienced a gradual uptick in prices due to a revival in demand from the packaging and consumer goods industries. By the onset of March, the price of R-PP had experienced a noticeable increase. Despite logistical challenges that could have stemmed from analogous protests affecting the European market, such as those by the farmers in Germany, the North American supply chain proved to be resilient.
Inventory levels were managed efficiently, avoiding any drastic supply shortages or overstock situations. As March progressed, prices reflected the buoyant market sentiment, with R-PP reaching a price point that was consistent with the global upward trend. The stability of the supply chain and the invigorated demand from key industries were the primary drivers behind this rise. In terms of figures, the market closed the quarter with R-PP prices reaching peaks that matched the robust demand, in line with the upward trend seen globally in the sector. In summary, the North American R-PP market in Q1 2024 concluded on a strong note, with March prices rising significantly, in a display of the market's ability to adjust to dynamic demands and maintain equilibrium despite potential disruptions.
APAC
In Q1 2024, the APAC region witnessed a significant decline in prices for Recycled Polypropylene (R-PP). Several factors influenced the market prices, leading to a negative pricing environment. In China, the largest market for R-PP, prices experienced the maximum changes. The overall trend in the market was characterized by decreasing prices as demand weakened and inventories remained high. One of the key factors influencing the pricing environment was the decreased demand from downstream industries, particularly the Packaging sector. This, coupled with ample inventory levels, resulted in reduced trading activities and downward pressure on prices.
Comparing the prices to the same quarter last year, there was a significant decrease of 21%. The decline from the previous quarter in 2024 was recorded at 13%, indicating a continued negative sentiment. Furthermore, there was a notable price difference between the first and second half of the quarter, with a decline of 9%. In China, the quarter-ending price for R-PP Injection Moulding was USD 725/MT (FOB - Shenzhen), reflecting the downward trend in prices. Overall, the pricing environment for Recycled Polypropylene in the APAC region in Q1 2024 was negative, with significant price declines driven by weak demand and high inventory levels.
Europe
In the first quarter of 2024, the European market for Recycled Polypropylene (R-PP) displayed a mix of stability and upward price movements, primarily influenced by the German market. The quarter began on stable ground with prices at USD 1650 per metric ton. However, as January progressed, demand fluctuations from the automotive and packaging sectors led to a decrease, with prices settling mid-month. Despite these early dips, the market began to pick up pace in February. An uptrend emerged, fuelled by a combination of increased demand, particularly from the packaging industry, and supply chain disruptions, such as the farmers' protests in Germany. These factors, along with a rise in Propylene prices, edged the R-PP prices upward by early March. Throughout March, the market witnessed a steady climb in prices. The month started with prices at USD 1690 per metric ton, and despite initial concerns over protest-related disruptions, the market showed resilience. By the end of the month, prices had increased to USD 1740 per metric ton. The month was characterized by a bullish sentiment, supported by strong demand from the downstream sectors, such as packaging and textiles, against a backdrop of sufficient inventory levels that helped to keep supply and demand in check. The market navigated through external disruptions and fluctuating demand to find a balance that supported a consistent rise in price levels.
MEA
In the MEA region, the R-PP (Recycled Polypropylene) market during the first quarter of 2024 showed a remarkable trend with a gradual uptick in prices despite a rather cautious demand. The quarter commenced with prices hovering around USD 745 per metric ton, as demand from consumer goods and packaging industries wasn't strong enough to drive significant price movements. However, as the quarter unfolded, prices saw a modest increase. This uptick, starting in late January, was driven by an intensified demand from the downstream packaging sector, coupled with a strategic consumption of inventory levels. By the end of February, this upward trajectory in demand led to a price rise. Throughout March, the R-PP market in the MEA settled into a stable sway with prices consistently at USD 780 per metric ton. The market struck a balance with adequate inventory levels to satisfy the packaging businesses' demand, resulting in a steady supply-demand scenario. Despite a noticeable trend in the feedstock Propylene market which suggested an increase in production costs, R-PP prices remained unaffected in March.
For the Quarter Ending December 2023
North America
Recycled Polypropylene (R-PP) pricing for the North America region in Q4 2023 followed a downward trajectory. The market observed a bearish sentiment influenced by a combination of weak demand from downstream packaging sectors and an oversupply situation, leading to subdued market dynamics and reduced purchasing activities. However, the sluggish demand for products manufactured from recycled materials, including packaging and household items, had a negative impact on market sentiments.
In the United States, the market exhibited stability with a lateral price trend, influenced by the economic pricing of virgin PP when compared to R-PP. Despite a decrease in spot price offers, the country experienced a slight decline in demand, primarily driven by weak fundamentals in downstream consumer goods and packaging industries. The augmented collection rate of post-consumer products has enhanced the availability of the base material, but challenges persist due to lacklustre consumption in key downstream sectors such as construction and packaging.
Overall, the North American R-PP market faced a decline in prices driven by weak demand, high supply, and reduced activity in key sectors. However, the potential growth in demand for recycled materials may contribute to a more positive market outlook in the coming periods.
APAC
The current quarter of 2023 for Recycled Polypropylene (R-PP) in the APAC region witnessed a mixed trend in prices. The market remained stable with moderate demand from the automotive and construction industries, but low demand from packaging industries resulted in a decline in prices. The availability of scrap PP material contributed to a low cost of product production, which kept the supply high. The bearish market sentiment was due to insufficient stocks among enterprises and unhealthy demand from the Asian market. The price of R-PP-Injection Moulding Spot Ex-Shenzhen decreased to USD 832/MT by the conclusion of the second week of December. The trend for China was negative, with a -10% change from the same quarter of the previous year. However, there was a 2% increase in price from the previous quarter of 2023. The reduction in prices was primarily due to unfavourable forecasts for demand from downstream industries involved in the production of recycled automotive parts and packaging materials. The Chinese R-PP market faced a demanding week due to weakened market fundamentals in the sector, resulting in a decline in prices. The quarter ending price of R-PP-Injection Moulding FOB Shenzhen in China was USD 832/MT.
Europe
Recycled Polypropylene (R-PP) pricing for the Europe region in Q4 2023 was marked by a declining trend. The market witnessed a bearish sentiment due to weak demand from downstream packaging sectors, coupled with high supply, leading to reduced purchasing activities and subdued market dynamics. Germany experienced a stable market with a lateral price trend driven by economic pricing of virgin PP in comparison to R-PP, despite reduced spot price offers. The country also witnessed a slight slump in demand, driven by weak fundamentals from downstream consumer goods and packaging industries. Additionally, an increase in the rate of collecting post-consumer products has made the base material more readily available, but weak consumption in key downstream sectors such as construction and packaging is creating challenges for recyclers. The latest price for R-PP - Natural Pellets FD Hamburg in Germany in Q4 2023 is USD 1680/MT. The quarter experienced a -20% YoY price change and a -7% price change from the previous quarter. The price comparison between the first and second half of the quarter in Germany showed a -2% change.
MEA
The Middle East (MEA) region's Recycled Polypropylene (R-PP) market declined in the fourth quarter of 2023. The market decline was driven by the economic pricing of virgin PP, leading to low demand for R-PP in the recycled Packaging and automotive parts manufacturing sectors. The market witnessed high supply, and insufficient stocks among the enterprises to counter the asked demand might rise the procurement activity, which may directly affect the product market sentiments. Moreover, the growing demand for products made from recycled materials, including packaging and household items, might influence the market sentiments. Saudi Arabia, the largest economy in the region, witnessed a bearish trend, with low demand from the downstream packaging sector leading to reduced purchasing activities and subdued market dynamics, resulting in a decline of 2.6% in prices. The quarter experienced a -2% price change from the previous quarter. The price percentage comparison of the first and second half of the quarter of the selected country declined. The quarter ending price of R-PP - Injection Moulding Spot Ex-Riyadh in Saudi Arabia was USD 760/MT.
For the Quarter Ending September 2023
North America
The U.S. Recycled Polypropylene (R-PP) market in the third quarter of 2023 experienced a continuous price decline. At the beginning of Q3, Market sentiments continued to remain bearish across the region on the back of a sluggish demand outlook from the downstream Packaging and Textile industries. In addition, the enterprises from the local region claimed that they have sufficient inventories in the region for further requirements. Also, major manufacturers experienced operational hurdles, which resulted in a cautious approach that led to limited trading activities, prompting sellers to keep the price at its lower end. Furthermore, in the months of August and September, the price again showcased a bearish momentum largely attributed to a reduction in export activities, primarily caused by drought conditions in Panama. The slowdown in shipping through the Panama Canal led to a decrease in export volumes of recycled products. Consequently, the domestic market has witnessed the accumulation of high inventories of raw materials, which has significantly influenced market dynamics. Despite the consistently high demand from downstream industries, the presence of ample inventories within the local market has played a pivotal role in further declining trends.
APAC
The price of Recycled Polypropylene (R-PP) remained bullish over the third quarter of 2023 and showcased an increment of approximately (2.4%) during the entire Q3. At the beginning of Q3, the Market analyst primarily ascribed a descending trend witnessed on account of a shift in demand, with significant key sectors such as the Packaging and Plastic industry. Additionally, Recyclers throughout the Chinese region have expressed concerns about the high backlogs of inventories; furthermore, diminished international market fundamentals manipulated market participants for further investment in the product. In the months of August and September, the Recycled polypropylene industry encountered a significant upturn. This hike in the price of materials occurred on account of a shift in demand, with significant key sectors such as the Automotive industry, while the downstream construction and building sector also looked to build up their stock at a lower price level for further requirements due to which healthy spot trading activity has been observed within the domestic market, thus keeping recyclers motivated and the price elevated. Furthermore, the Chinese market has encountered delivery delays, resulting in a tighter supply situation and kept the market bullish.
Europe
The price of the Recycled Polypropylene R-PP remained bearish over the third quarter of 2023 and showcased a decrement of approximately (14.6%) during the entire Q3. The price of the Recycled Polypropylene R-PP showcased a declining trend at the beginning of Q3 2023. This sharp price fall was observed because of gloomy demand outlooks from the downstream Packaging and Textile industries. On the other hand, healthy availability of the material had narrowed the gap between demand and supply, consequently opening doors for the purchasers to offer lower bidding prices and forcing the suppliers to provide discounts to sell their inventories. Furthermore, in the months of August and September, the persistent sluggish demand for Recycled Polypropylene(R-PP) from the Packaging and Textile industries, both domestically and globally, has negatively impacted the product's pricing. Moreover, the weakened Purchasing Managers' Index (PMI) in the region has further exacerbated market challenges, with reduced manufacturing activities and industrial output in countries contributing to decreased demand for finished products within the market, with weaker consumer spending. Furthermore, the region is experiencing repetitive surges of material, resulting in an overflow situation.
MEA
The Recycled Polypropylene R-PP market continuously followed a declining price trajectory throughout the third quarter of 2023 and showcased a decrement of approximately (4.4%) during the entire Q3. At the beginning of Q3, the continuous sluggish demand for R-PP from packaging and plastic industries in domestic and global markets hampered the price of the product. The spot market continued to observe a slower pace. Despite the lower spot price offers, petitions from the enterprises remained low. The manufacturers were seen under pressure with a declining demand situation and were found to claim a lower consumption rate of R-PP from the associated downstream businesses. Furthermore, significant manufacturing units have cut their production rate to avoid further building of stocks, as buyers refrained from placing large orders. Furthermore, in the months of August and September, the consistent inflow of material from the Chinese market left buyers hesitant due to high inventories. As demand fell of exaptation from the downstream industries with it, Enterprises didn't show any interest in bulk purchasing instead. Furthermore, the market participant looked interested in procuring their stocks on an immediate basis. However, demand from the Automotive sector was moderate but was not enough to hold the market at a steady position. This results in muted trading activities, pushing the sellers to provide discounts on the product and keeping the overall market fundamentals bearish.
For the Quarter Ending June 2023
North America
In the second quarter of 2023, the prices of Recycled Polypropylene R-PP showed an overall declined price trend amid uncertain economic conditions coupled with the raised inflation rate. In April, the price of R-PP showed a decrease in price due to low demand from the major associated downstream packaging and Construction industries amid surplus availability of material. Furthermore, ample araciality of waste PP material at a cheaper price from the overseas market provoked the local mills to reduce their offer prices. In May, the debt crisis that happened due to the simultaneous downfall of major banks in the USA caused a drastic effect on the US marketing condition and motivated the buyers to hold back from placing large orders with it, R-PP market experience further decline trend. The inventory level remained high in the month of June, as the market remained under pressure from the weak downstream demand from the Textile and packaging segment. Furthermore, weak demand from international market has created overall pessimistic market leaded to slump in price of the commodity.
APAC
The price of the Recycled Polypropylene R-PP remained bearish over the second quarter of 2023 and showcased a decrement of approximately (13%) during the entire Q2. In the beginning of Q2, Market analyst primarily ascribed this descending trend witnessed on account of sluggish query from the associated businesses like Textile and packaging industries. Furthermore, in the month of May, added that the R-PP market is experienced the impact of downturn in the price of virgin PP material, also a rise in post consumers product collection rate, leaded to ease in availability of base material, but weak consumption rate from key downstream sectors posed difficulties for the recyclers. Transactions remained challenging as purchasing activities remained at its lower hand. Additionally, Recyclers throughout Chinese region have expressed concerns about the high record, furthermore, diminished international market fundamentals manipulated market participants for further investment in the product and recyclers across the region claimed operational hurdles in the month of June. Thus, the price of R-PP-Injection Moulding FOB Shenzhen settle down at USD 830/MT in the last month of Q2.
Europe
The price of the Recycled Polypropylene R-PP showcased a surging trend in the beginning of Q2 2023, in the wake of declined in the inventories level of among major enterprises, Furthermore, rise in trading activities has been observed from the market participants to replenish their stocks to meet the downstream requirement. Suppliers took advantage of the situation and utilized this opportunity to enhance their profit margin. Moreover, in the month of May and June market fundamentals remained moderate in the European market, however the spot market continued to observe slower pace, despite the lower spot price offers, petition from the enterprises remained low. As companies had already procured a substantial amount of the product in the previous month leaded to market saturation. Furthermore, poor demand situation from the major consumers of R-PP such as Textile and packaging industries consequently leaded to low trading activities. Additionally, economic uncertainty and recession fear continued to govern market sentiments. Anyways the price of R-PP - Natural Pellets FD Hamburg during the entire Q2 time period showcased an increment of (1%).
MEA
The Recycled Polypropylene R-PP market continuously follow declining price trajectory throughout the second quarter of 2023, in the beginning of Q2 a generally skeptical market has been created by falling trading activities. The extended weakness in the buyer appetite in the domestic market, as well as in international market with sluggish end-user consumption in the key industry such as Textile and packaging sector, prompted market participants to keep the prices on the weaker side to keep the prices economical. Furthermore, during the last month of Q2, adequate supplies of product in the domestic ports kept the market oversupplied and due to the plentiful availability of the product in the region, despite low demand amid feeble purchasing activities of the material with it Slump in market value of R-PP was observed. Thus, the price of R-PP - Injection Moulding Spot Ex-Riyadh drop to USD 816/MT in the last month of Q2, with an overall decrement of roughly (7.7%) during the entire Q2 time period. As the demand recovery fell short of expectations and Overall consumption of showed a deep contraction and failed to regain momentum.
For the Quarter Ending March 2023
Middle-East
In the first quarter of 2023, the Recycled Polypropylene market in the Middle-Eastern market observed mixed sentiments. The offers were dropped during the first half of the quarter, followed by the rebound in the second half of the quarter. In the Saudi Arabian market, the offers plunged during the first half of the quarter due to the lacking demand from the prominent markets. There were several inquiries at the staring of the quarter as the Chinese players rushed to restock inventories ahead of the festive season. Whereas the European players are highly cautious about the market developments as the inflation and rising interest rates slowed the market competitiveness. As a ripple effect, the Ex-Riyadh discussions for R-PP were assessed at USD 885 per tonne during the quarter ending March 2023.
Asia Pacific
Overall the Recycled Propylene market in the APAC region observed a signific improvement during the first quarter of 2023. The offers quoted in the prominent economies observed a consistent surge in the offers quoted in the domestic market. This development is predominantly supported by the rebound in the market activities in China, and the authorities have eased the COVID restrictions followed by the festive season in the region resulting in consistent fluctuation in the market competitiveness amongst the market players. At the same time, the demand outlook has remained healthy and staggered upward slowly. In addition, major Indian market players claimed that the participation of the East Asian players had soared tremendously as the Chinese lunar new year holidays ended. As a ripple effect, the Ex-Shenzhen discussions for Recycled PP injection molding grade were assessed at USD 939 per tonne during the quarter ending March 2023.
Europe
In the first quarter of 2023, the Recycled Polypropylene market in the European market has observed a staggering downward trend. Initially, since the quarter started, the market sentiments have remained dull, and the competitiveness amongst the market players has persistently prevailed the impact from the last quarter. At the same time, the market analysts were assured that the upcoming recession, coupled with the instability in the energy market, has weakened the supplier's will to reduce the offers in the domestic market. As a ripple effect, the FD Hamburg discussions for R-PP natural pellets were settled at USD 2020 per tonne during the quarter ending March 2023.
For the Quarter Ending December 2022
North America
In this quarter, the price of Recycled Polypropylene decreased in North American markets as well as Asian and European markets. When it comes to the U.S., the decline in upstream crude oil prices had a substantial effect on this commodity's cost. They were only passingly interested in this product because downstream businesses preferred virgin PP for their manufacturing activities. As a result, the market occasionally experienced an oversupply of this product. However, for the majority of the time, this product's prices remained relatively constant due to the stability of the demand-to-supply ratio.
APAC
Recycled Polypropylene saw mixed market sentiments throughout the entire Asia-Pacific region during this quarter as well. In China, this product's price increased in the second week of October and remained stable for some time. However, it decreased in the final week of November and remained the same until the quarter's conclusion. Because they were having difficulty producing as a result of the implementation of Covid -19 curbs, the downstream businesses' decreased demand for this product was the cause of the price drop. This quarter saw a decline in the price of this product in India. The market was primarily driven by the level of demand that textile and kitchen utensil manufacturers were demonstrating for R-PP for their production purposes. The decrease in the cost of crude oil also had an effect on this product's price.
Europe
This quarter saw a decline in the Recycled Polypropylene market in Europe. In Germany, the price of this product began to decrease in the third week of October, remained stable for some time, decreased twice more in December, and remained the same for the remainder of the quarter. Due to the ongoing conflict between Russia and Ukraine, the textile and kitchen utensil manufacturing companies were more concerned about increased energy costs and restricted their production, significantly reducing market demand for this product. As a result, there was sufficient stock of this product to satisfy typical market demands. The happenings in the upstream crude oil market also had an effect on this product's price.
For the Quarter Ending September 2022
North America
Just like the Asian and European markets, the price of Recycled Polypropylene stepped down in North American markets too in this quarter. Due to the fact that downstream businesses preferred virgin PP to this product for their manufacturing activities, they were only showing a passing interest in it. As a result, there was occasionally an oversupply of this product on the market. However, due to the stability of the demand-to-supply ratio, this product's prices remained relatively constant for the majority of the time. Due to the heat of the summer, the PP recycling companies shut down their facilities.
APAC
Recycled Polypropylene was witnessing mixed market sentiments in the whole of the Asia-Pacific region this quarter. When it comes to China, the cost of this product got enhanced in the month of July. However, it started to decline from the next month and continued falling till the end of this quarter. The downstream businesses' reduced demand for this product was the cause of the price drop because they were having trouble producing due to power outages. Due to power supply uncertainties, upstream companies had to reduce their manufacturing rates as well. The price of this product was also affected by lower crude oil prices. Hence, R-PP closed its market in China this quarter at USD 880 per MT (for injection molding grade) on a spot ex-Shenzhen basis. In India, the price of this product was witnessing ups and downs this quarter, and the market was driven primarily by the degree of demand that the textile and kitchen utensils production companies were exhibiting for R-PP for their production purposes.
Europe
The European market of Recycled Polypropylene was seeing ups and downs this quarter. The cost of this product came down in July and got enhanced in the next month and dropped again in September. The textile and kitchen utensil manufacturing companies, who were more concerned about skyrocketing energy costs and erratic power supply, which had hampered their production activities significantly, were the primary drivers of this product's demand in the market. The price of this product was also affected by the events that were going on in the upstream crude oil market. So, R-PP ended its market in Germany this quarter at USD 2,310 per MT (for natural pellets grade) on an FD – Hamburg basis.
For the Quarter Ending June 2022
North America
R-PP market remained strong in the second quarter of 2022 amid stable upstream Polypropylene prices. The price trends of R-PP have climbed modestly amidst stable demand from the downstream bottling and packaging sector for high-grade applications. The consumer inclination towards recyclable plastics for food and beverages and fluctuating input costs significantly impacted the spot price of R-PP in the domestic market. Also, the COVID shut down in China levied its impact on the inquiries for PP and proportionally weighed on the global market sentiments. However, the US recycled plastics sector has experienced a shortfall of scrap plastics, requiring material imports from other Asian and North American countries.
APAC
The Recycled Polypropylene observed mixed sentiments across the Asia-Pacific region amid uncertainties in the terminal demand. The lockdown restrictions and resurgence of Covid cases in China have created a supply-chain imbalance and substantially affected the market value of R-PP. The prices dropped at the start of the quarter amid vague domestic and foreign demand. The inventories were overflowing with enough suppliers to cater to the staggering inquiries from the regional market. However, the market gradually improved after combating the stringent Zero-Covid Policy as the supply chain showed signs of improvement and active inquiries from importing countries at the quarter-end. The prices for Recycled Polypropylene Injection Moulding, Shenzhen, were settled at USD 875/MT on a FOB basis.
Europe
In Germany, the cost of recycled polypropylene has risen significantly by 7.6% from the prices observed in the first quarter due to skyrocketing demand from the bottling and packaging sector. The recyclers across the country faced obstacles in securing enough supplies of plastic waste, strengthening the price dynamics of scrap bale feedstock. Hence, the country faced strong supply-side concerns for the feedstocks, negatively impacting the goal of the circular economy. In addition, the ongoing energy crisis due to conflicts between European nations has also imparted enough cost pressure on the production of recycled polypropylene. In June, the price of R-PP for R-PP-Natural Pellets FD Hamburg settled at USD 2400 per ton in Germany.
For the Quarter Ending March 2022
North America
The prices of recycled Polypropylene fluctuated throughout the 1st quarter of 2022 in North America because of changing feed Polypropylene prices. There was a 7% decrease in the prices of feed Propylene in Q1 2022. However, Propylene prices rose significantly throughout the period, the price trend in downstream recycling industries was not much affected. The demand for RPP was less in January, and the supply was high from the manufacturing industries in the American market, as abundant RPP was available in the market. The prices increased 5% throughout the period, starting January until the last week of March.
Asia Pacific
RPP prices fluctuated continuously in the Asian region throughout the quarter because of shifting prices of feed Polypropylene. In Asia, prices were decreasing in the first month of 2022 because of excess supply and limited demand from the downstream sector. Demand from the textile and household sectors escalated in February and March, which increased the prices in the Asian Market. Prices decreased by 3% on average from the last quarter of 2021 till March 2022 in the Indian market. In India, prices settled at USD 1526.06/tonne by March. The accessed prices were USD 966/tonne in China by the end of the quarter.
Europe
The prices remained strong in the European region and increased continuously throughout the quarter. Feed polypropylene prices showed fluctuations throughout the period, which affected the Production Cost of RPP and reduced energy supplies to industries during the winter months, which impacted the production rate of RPP, due to which prices rose by 5% and 6% in January and February, respectively. Increased freight charges and shipping costs resulted in supply shortages from exporting countries throughout the quarter. The average increase was 15% from the last quarter of 2021 till March 2022. The Natural Pellets prices on FD basis in Germany were accessed at USD 2250 /tonne.
For the Quarter Ending December 2021
North America
Taking support from the volatility in virgin polypropylene prices which stemmed from a strong upstream market following weaker productions from Ida-hit refineries, the Recycled Polypropylene market showed bullishness during October. The spot market stood tightened with supply deficiency amid upsurged demand raising the traders’ sentiments to offer firm contracts. However, the demand lost stream owing to a decrease in queries from the fibre industry and underperforming Automotive sector, while the packaging sector maintained consistent offtakes. The increasing Omicron cases towards the end of the quarter exacerbated the winter season dullness in the market, causing the FOB prices of Recycled Polypropylene in the USA to however around USD 1880/MT during December.
Asia
The Asian Recycled Polypropylene prices exhibited a proliferative trajectory during the first two months of the quarter with constraints in raw material inflow and a strong virgin Polypropylene market. In line with the growing government’s pressure on establishing circularity in plastics, the Indian downstream consumer goods sector showed an unusually high inclination towards Recycled Polypropylene causing the demand to stay robust. China also witnessed a surge in Recycled Polypropylene prices during the initial two months with low production on account of scarce post-consumer bale supplies and energy rationing by the local government. However, the slowdown in market movements due to restrictions imposed for preventing Omicron spread brought slumber in the Recycled Polypropylene market at the quarter-end. The traded Ex-Delhi prices in India and the FOB Shenzhen prices in China settled around USD 1463/MT and USD 950/MT, respectively, during December.
Europe
The prices of Recycled Polypropylene rode on the crest of waves during Q4-2021, with an unprecedented rise in the demand prospects coupled with high input cost due to energy and post-consumer bale shortage. The manufacturers remarked about production volumes not sufficient enough to cater to the number of enquiries. The globally prevalent port container crisis worsened the struggles of market participants by adversely affecting the export activities. Despite the unabated rise in Recycled Polypropylene consumption in the downstream industries, the market sentiments favoured prices to stay cheaper than its virgin counterpart. Notching the highest level during December, the prices of Recycled Polypropylene were assessed as USD 1960/MT FOB Hamburg in Germany.
