Commodity Market Report
Polypropylene North America monthly market overview January 2020
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Report summary
North American production in December increased faster than anticipated, thanks to late pick up in the domestic demand. Overall, North American consumption in 2019 experienced a 3.2% drop from 2018 levels. The reduction in demand was due to a 10% drop in fibers demand in 2019. Injection molding was also weak growth, with an estimated 6% drop in demand vs. 2018. New capacity from Braskem’s La Porte facility is expected to come on-line in Q2 2020. Feedstock polymer grade propylene (PGP) prices are projected to fall for the fourth consecutive month. Weak feedstock prices have driven both spot polypropylene export and domestic prices to near 2019 lows.
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