Global polypropylene supply and demand variables have increased sharply

Market analysts predict that in the second half of the year, the global polypropylene industry will face challenges
such as the continuous new crown epidemic, the arrival of hurricane season, the continuation of international conflicts, the increase in capacity supply and the large regional pricing differences.

Asia is mainly affected by the ongoing epidemic and oversupply

The Asian polypropylene market is already oversupplied, and China's polypropylene production capacity will continue to expand in the second half of the year and in the
future.

Since 2014, China has worked to promote self-sufficiency in chemicals and polymers
.

Most of China's new polypropylene production capacity is based on state-of-the-art technology, world-class scale, and more competitive raw materials, and companies will promote exports
by increasing operating rates and commissioning new plants.

The Southeast Asian polypropylene market is likely to continue to be oversupplied in the second half of the
year.

Market sources noted that due to weak demand in Southeast Asia, producers are looking for polypropylene export opportunities outside of Southeast Asia, including Europe, South America and South Asia
.

North America is not competitive in price

In the first half of the year, the US polypropylene market was largely plagued
by persistent inland logistics, lack of spot quotations and insufficient competitiveness in export pricing.

According to global data from S&P global data of American consulting firms, from January 3 to May 18 this year, the spot export price of polypropylene in the United States reached 1852 US dollars / ton, an increase of more than 27%, and the increase since the second quarter of more than 5%.

However, market participants are cautious
.

International conflict continues to be one of the key factors of
uncertainty in the European market.

As the center of Eurasian trade, Turkey in the first half of the year due to war, high inflation and weak Turkish currency, polypropylene demand is insufficient, the second half of the recession is still difficult to reverse
.