December 2024 witnessed a noticeable decline in the prices of polypropylene (PP) glass-filled compound across the Asian market, driven by mixed supply-demand dynamics and fluctuations in upstream prices. However, industry players are optimistic about a rebound in January 2025, supported by improving market fundamentals.

International crude oil prices rose in early December due to increased supply risks stemming from geopolitical tensions in Syria. The delayed implementation of the OPEC+ production cut plan further supported the PP glass-filled compound prices. However, by the end of the month, a stronger U.S. dollar and contracting consumption led to weaker upstream support for PP prices.

On the supply front, domestic PP production in Asia showed a mixed trend. Several plants, including Jincheng Petrochemical and Dalian Hengli, initiated new operations, only to face shutdowns due to technical issues. Conversely, maintenance tasks at facilities like Zhongyue Haitian Petrochemical concluded by the end of December, increasing production loads at the start of the month. Weekly production volumes rebounded indicating ample supply in the market despite some instability in new plants supporting the ease in the PP glass-filled Compound.

The demand for PP glass-filled compound remained largely reliant on rigid applications, with seasonal factors impacting consumption patterns. Sectors such as fertilizers, cement, and rice packaging exhibited steady demand, though plastic weaving consumption narrowed slightly. As year-end approached, stocking activities slowed, with enterprises focusing on essential restocking rather than speculative buying in the PP glass-filled compound market.

The automotive sector offered a glimmer of hope for PP glass-filled compound demand. India’s automotive market continued its growth streak in December, with wholesale vehicle dispatches rising slowly. Major manufacturers like Maruti Suzuki, Tata Motors, and Mahindra reported strong sales, particularly in the SUV segment, supporting downstream consumption of PP glass-filled compounds in automotive components.

The Asian market participants anticipate a recovery in PP glass-filled compound prices in January 2025. The expectation is based on several factors, including stronger demand from the automotive sector, continued growth in new energy vehicle (NEV) sales in China, and a likely stabilization of upstream crude oil prices. With NEV sales in China surpassing 1.4 million units in December and leading automakers like BYD and NIO setting new records, the outlook for PP glass-filled compound consumption in the automotive sector remains positive.

In addition, the ongoing transition toward more sustainable and lightweight materials in automotive manufacturing is expected to further boost demand for PP glass-filled compound. As manufacturers replenish inventories post-holidays, the market could see increased purchasing activity, supporting a price rebound.

As per ChemAnalyst, while December 2024 presented challenges for the PP glass-filled compound market in Asia, the prospects for January 2025 look brighter, driven by favorable market fundamentals and robust demand from key sectors.