As polypropylene (PP) contracts in the US are typically set at polymer-grade propylene (PGP) prices plus an adder, weak demand has caused cumulative PP adders to fall 3￠/lb, or $66/mt, over 2019. Feedstock propylene values have fallen on bearish market conditions because demand from PP, which accounts for 67 of propylene consumption, has been weak. At the same time, strong refinery rates have cause supplies to build as margins to process LPG in flexible feed crackers have been favorable. The slowing automobile markets in Europe and Asia have led to weakness in global manufacturing. According to Institute for Supply Management's data, US manufacturing fell for five straight months to Dec.
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