Polypropylene prices have surged nearly 30% year-on-year, hitting an inflated peak fueled by $101+ Brent crude.
A stark regional gap has opened: Europe faces severe crisis pricing (€1,148–€1,168/t) due to high energy costs, while Asia remains lower ($1,200–$1,215/t) due to mega-factory overcapacity.
Buyers are losing heavily under intense margin squeezes. Meanwhile, US and Middle Eastern producers are winning big, actively expanding their profit margins by using cheap, abundant domestic ethane gas to export into this expensive global market.
Personal Remarks
The big picture is simple: America is the ultimate winner because its cheap natural gas makes producing polypropylene incredibly profitable. Meanwhile, Europe is the clear loser, crushed by skyrocketing energy bills that make manufacturing plastic way too expensive to survive.
Source
https://tradingeconomics.com/commodity/polypropylene
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