Commodity Market Report
Polypropylene North America monthly market overview February 2020
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Report summary
January North American production levels remained elevated from there Q4 2019 lows at almost 620kt. New capacity from Braskem’s La Porte facility is expected to come on-line in Q2 2020. Consumption levels in January continued to increase, up 7% from December to 646kt. This growth comes from an increase in fibers, injection molding, and sheet end-use segments by 17%, 12%, and 9%, respectively, from December to January. Even with this growth, January demand still falls around 12kt shy of the 2019 average. Feedstock polymer grade propylene (PGP) prices have fallen for the fifth consecutive month. Domestic contract prices will continue to track the propylene prices, while the margin expansion is anticipated in the February settlement.
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