Commodity Market Report
Polypropylene North America monthly market overview April 2019
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Report summary
Polypropylene producers benefitted from low propylene feedstock costs following the plunge in crude oil and naphtha prices, which is regarded as the low point. Margins remained steady as polypropylene prices tracked propylene movements. High utilization since Q4-2018 allowed stock building as players were well prepared for the spring maintenance season. Markets dipped in February before gaining the momentum in March, as underlying demand remained healthy in advance of the peak manufacturing season in Q2. The unplanned outage at Total facility and spring maintenance at other facilities tightened the markets in March/early April. We expect prices to follow PGP price movements, with a possible margin expansion at the end of Q2-2019.
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