The trend of the global PP market is difficult to clear the fog

Due to the large differences in market conditions in various regions of the world, the uncertainty of the polypropylene (PP) market in the second half of 2021 is expected to rise
.
Market participants predict that factors supporting PP prices in the first half of the year, such as healthy downstream demand and tight global supply, will continue into the second half of the year.

Asia:

A variety of uncertainties inhibit supply and demand

Due to the rising uncertainty of the epidemic, downstream demand in the Asian and Middle Eastern markets may be suppressed
.
In the second half of this year, the Asian PP market was mixed.

According to statistics, in terms of production capacity, from June to the end of this year, Asia and the Middle East are expected to have about 7.
04 million tons/year of PP production capacity put into operation or restarted, including China’s production capacity of 4.
3 million tons/year and other regions’ production capacity of 2.
74 million tons.
/Year
.
There are still uncertainties in the actual progress of some expansion projects

PP demand is supported by medical, sanitation and packaging-related application demands, especially vaccination and economic recovery all contribute to PP demand
.
But in Asia, especially after the emergence of a new and more violent new crown pneumonia epidemic in India, the uncertainty is also growing

North America:

The hurricane season may exacerbate supply tensions

In the second half of this year, the key issues in the US PP market mainly include strong demand, tight supply and the upcoming hurricane season
.
As supply and demand are still out of balance, and raw material monomer prices rebound, local PP prices may rise further

The domestic demand for PP resin in the United States is strong, and the supply is increasing at the same time
.
Under normal circumstances, its domestic demand can be better met, which will also keep US PP exports at a low level this year

　　However, based on past experience, because the US PP industry is concentrated in the Gulf Coast region, the region is often affected by hurricanes from June to November each year, which has become an important uncertainty factor for the local PP market
.
In 2020, the U.

　　Europe:

　　Logistics problems are difficult to alleviate

　　Due to the global shortage of containers restricting the inflow of imported goods from Asia, the supply of PP in Europe still faces the challenge of insufficient supply
.
However, in terms of demand, with the continuous increase in the coverage of the new crown pneumonia vaccine in the European continent, the weakening of local epidemic prevention measures and the change of residents' consumption behavior, all areas of the service industry will inject new demands

　　In the first half of this year, due to strong PP demand, European PP prices have hit a record high
.
In the context of supply shortages, the spot price of PP homopolymer in Northwestern Europe rose by 83% in April, reaching 1960 Euros/ton
.
Market participants agreed that PP prices in the first half of the year may have reached the upper limit and will be revised downwards in the future, but it still depends on the recovery of logistics
.
A manufacturer said: "From the perspective of pricing, the market has reached its peak, but there will be no major decline in demand or pricing
.
"

　　Logistics issues will become the most critical uncertain factor in the European PP market
.
Market participants predict that for the rest of this year, the European PP market will need to take remedial measures against the global container shortage and work hard to keep the market in balance
.
Both PP resin producers and processors will use the traditional summer off-season to increase inventory levels to prepare for the expected rebound in demand in the second half of the year
.