PP to strengthen later this year in Europe and Asia, flat in US

摘要

US polypropylene (PP) production had been down somewhat in Jan. and Feb. due to spiking propylene prices and severe weather. Operating rates picked up in March and continued to do so in April, boosting supplies and pressuring prices. Propane dehydrogenation (PDH) units have been operating unevenly in recent years, providing a sporadic supply of PP feedstock propylene. PP prices usually decline in June, but they are expected to inch up in April and flatten in May even though some capacity is scheduled to be started or restarted. In Feb. and March, prices came down from an over-two-year high hit in Jan. that resulted from high propylene prices. The US is forecast to remain a net PP exporter regardless of rising domestic demand and a persistently wide premium of US prices over China's.