The global PP market faces multiple challenges

Recently, market participants predict that the supply and demand fundamentals of the global polypropylene (PP) market in the second half of 2022 will encounter many challenges, mainly including the new crown pneumonia epidemic in Asia, the beginning of the hurricane season in the Americas and the Russian-Ukrainian conflict
.

There are concerns about oversupply of PP in Asia

Market participants at S&P Global said that due to the oversupply of polypropylene resins in the Asian market, capacity will continue to expand in the second half of 2022 and the future, and the epidemic is still affecting demand
.

For the East Asian market, S&P Global expects a total of 3.

In the second half of the year, the Southeast Asian PP market will also continue to be oversupplied, as purchasing power remains weak
after the epidemic.

North America is concerned about the decline in propylene prices

The US PP market in the first half of the year was largely plagued
by ongoing inland logistics problems, lack of spot quotes and uncompetitive export pricing, according to sources.

From January 3 to May 18, the spot export price of PP resin in the United States rose by $507/ton to $1,852/ton, an increase of more than 27%, and more than 5%
since the beginning of the second quarter, according to S&P global data.

Still, North American market participants are wary of the volume of supply increases
.

The European PP market was impacted by the upstream

For the European PP market, S&P Global said that upstream price pressure seems to continue to trigger uncertainty in the European PP market in the second half of the
year.

Market participants said that the Russian-Ukrainian conflict will continue to be a key factor
in the movement of the European PP market.