For the Quarter Ending September 2024
North America
In Q3 2024, the Recycled Polypropylene (R-PP) market in North America faced a challenging environment, characterized by declining prices and subdued market activity. The market's downward trend was driven by reduced demand from key industries such as packaging and consumer goods, which traditionally absorb significant volumes of R-PP. This decrease in demand came amidst a backdrop of sufficient supply levels, with recyclers and manufacturers maintaining high inventory stocks. This surplus, coupled with competitive pressures from virgin polypropylene, contributed to the challenging market conditions.
The U.S. market, in particular, reflected the broader regional trends, with notable adjustments in pricing dynamics. Competition from lower-priced virgin polypropylene influenced the market, prompting R-PP suppliers to adopt competitive pricing strategies to maintain market share. Additionally, the impact of global trade uncertainties, including fluctuating export volumes, influenced the overall flow of recycled materials. Despite the stability in supply chains, the economic challenges faced by manufacturers led to cautious inventory management, further dampening the market outlook.
As Q3 drew to a close, the R-PP market in North America remained under pressure, reflecting the ongoing struggles with balancing supply and demand. The lack of significant recovery in consumption trends kept prices in check, emphasizing the need for improved demand conditions to support price stabilization. Overall, the quarter highlighted the difficulties recyclers faced in maintaining profitability amidst rising production costs and a competitive market landscape. This period underscored the importance of strategic planning in adapting to the evolving market dynamics and demand fluctuations in the R-PP sector.
APAC
In Q3 2024, the Recycled Polypropylene (R-PP) market in the APAC region faced a challenging environment characterized by declining prices. The decrease was influenced by multiple factors, including subdued demand from key industries like packaging and construction, which traditionally drive R-PP consumption. Additionally, the market faced competition from cheaper virgin polypropylene, further adding pressure on prices. This oversupply, combined with reduced purchasing activities, contributed to the negative sentiment throughout the quarter. China, being a significant market within the region, experienced notable fluctuations during this period, with prices reflecting broader regional trends. While the market showed a slight increase in July, the latter part of the quarter saw a consistent downward adjustment. Seasonal variations and cautious market behaviors among buyers further influenced this trend, leading to softer demand conditions. As Q3 drew to a close, the market for R-PP Injection Moulding grade on an FOB Shenzhen basis settled at 755 USD/MT, indicating a softening of prices compared to earlier in the quarter. The overall market conditions remained challenging, highlighting the ongoing struggle to balance supply and demand amidst competitive pricing strategies and fluctuating demand patterns.
Europe
In Q3 2024, the Recycled Polypropylene (R-PP) market in Europe experienced a steady uptrend in prices, supported by several key factors. Robust demand from industries like packaging and automotive continued to drive consumption, leading to increased pricing pressure. Additionally, constraints in the supply chain and rising production costs, including higher energy expenses, further bolstered the upward pricing trend across the region. Germany, a significant market for R-PP in Europe, saw the most notable price adjustments, reflecting the broader regional trend. The post-summer season brought about a rise in industrial activity, contributing to heightened demand and a corresponding increase in prices. The consistent price growth throughout the quarter underscored the region’s resilience amid fluctuating supply conditions. As Q3 drew to a close, the market for R-PP Natural Pellets FD Hamburg in Germany settled at 1,856 USD/MT, highlighting the sustained bullish sentiment. The quarter demonstrated the market’s ability to adapt to evolving conditions, with demand recovery playing a crucial role in maintaining positive price movements. The overall trend in Q3 2024 emphasized the balance between steady consumption patterns and constrained supply levels, positioning the market for potential growth in subsequent periods.
MEA
In Q3 2024, the Recycled Polypropylene (R-PP) market in the MEA region faced a challenging environment, characterized by a consistent decrease in prices. This downward trajectory was influenced by several key factors, including stable production levels, weaker demand from major sectors like packaging and automotive, and increased competition from virgin polypropylene alternatives. The market’s negative sentiment was further exacerbated by a slowdown in global economic conditions, leading to reduced international orders and a surplus in supply over demand. Saudi Arabia, in particular, reflected the region's overall pricing dynamics, with notable price adjustments throughout the quarter. The country saw a gradual decline, particularly in the latter half of the quarter, as seasonal demand patterns waned. This resulted in a softer market environment, with a focus on stabilizing prices amidst lower trading volumes. By the end of Q3, R-PP Injection Moulding Spot prices in Saudi Arabia settled at 728 USD/MT on Ex-Riyadh basis. The persistent decline highlighted the challenges in achieving a balanced market, underscoring the need for demand recovery to support a more stable pricing outlook in the future.
For the Quarter Ending June 2024
North America
In Q2 2024, the pricing environment for Recycled Polypropylene (R-PP) in North America demonstrated notable stability. This quarter exemplified a balance in supply-demand dynamics, primarily due to consistent availability of raw materials and steady demand from key downstream sectors such as packaging, construction, and automotive.
Despite moderate supply constraints impacting the broader region, enhanced recycling efforts and stable upstream prices for virgin PP contributed to maintaining price equilibrium. Focusing specifically on the USA, where the most significant price fluctuations were observed, the overall market sentiment remained stable. The trends indicated a robust demand from sectors prioritizing sustainable materials, which sustained R-PP prices. Seasonality factors such as increased demand during peak summer sales were offset by efficient supply chain operations, ensuring no drastic price changes. This quarter’s pricing stability starkly contrasts with the same quarter last year, which saw a substantial decline, attributed to previous market volatilities.
Compared to the previous quarter of 2024, the market conditions showed improvement, reflecting sustained demand and balanced supply dynamics. The comparison between the first and second halves of Q2 2024 revealed no significant price difference, underscoring the stable market conditions. Overall, the pricing environment for R-PP in the USA during this quarter has been stable, driven by balanced supply-demand dynamics and supportive market conditions.
APAC
In Q2 2024, the Recycled Polypropylene (R-PP) market in the APAC region experienced notable price increases, driven primarily by strong demand from key sectors such as packaging and automotive, along with supply chain constraints. The emphasis on sustainability and eco-friendly materials heightened R-PP's appeal, contributing to intensified market activity. Additionally, logistical challenges and rising transportation costs played a crucial role in the upward pricing pressure. The cautious sentiment in the market, with stakeholders closely monitoring inventory levels, further compounded the supply-demand imbalance, sustaining elevated prices. Focusing exclusively on China, the market exhibited pronounced bullish trends, driven by robust demand and constrained supply. Seasonal factors, including heightened procurement activities in preparation for summer sales, significantly influenced price volatility. The observed price changes were correlated with increased industrial activity and stable upstream costs for virgin polypropylene. Compared to the same quarter last year, prices were down significantly, reflecting a correction from previously inflated levels. However, the quarter-to-quarter change from Q1 2024 indicated a moderate 1.7% decline, highlighting a stabilization phase within an overall increasing trend. Price comparison between the first and second half of the quarter showed 8.22% rise, evidencing the accelerating demand towards the latter part of the period. Concluding Q2 2024, the latest quarter-ending price for R-PP in China stood at USD 790/MT for injection moulding on FOB Shenzhen basis. This quarter has been characterized by a predominantly positive pricing environment, underpinned by strong demand dynamics and constrained supply channels, reinforcing the upward sentiment in the R-PP market.
Europe
In the second quarter of 2024, the European Recycled Polypropylene (R-PP) market experienced a notable uptick in pricing, buoyed by several key factors. Increased demand from the automotive, packaging, and construction sectors drove this upward momentum, as industries leaned towards sustainable materials. Regulatory pressures advocating for recycled content in manufacturing further amplified demand. Concurrently, supply constraints exacerbated by logistical challenges and limited availability of post-consumer and post-industrial PP waste tightened the market. Rising transportation and logistics costs compounded these factors, exerting additional upward pressure on prices. Focusing on Germany, which witnessed the most significant price fluctuations, the overall trend was bullish. Seasonality played a role, with the peak summer period spurring heightened activity in the packaging industry. The price of R-PP rose by 8.2% compared to the previous quarter, underscoring a robust demand-supply dynamic. However, it's worth noting a substantial decline from the same quarter last year, indicating a complex interplay of market forces over an extended period. Within the quarter, the first and second half showed a 2.1% price differential, reflecting a steady demand trajectory. The quarter concluded with R-PP - Natural Pellets priced at USD 1,820/MT on an FD Hamburg basis in Germany. This consistent increase in pricing illustrates a positive and bullish market sentiment, driven primarily by robust demand and constrained supply, signalling a favourable pricing environment for recycled polypropylene.
MEA
In Q2 2024, the Recycled Polypropylene (R-PP) market in the Middle East and Africa (MEA) region experienced a notable decline in prices, influenced by a confluence of pivotal factors. The overarching market sentiment remained bearish due to an oversupply situation arising from aggressive production and recycling efforts that exceeded the moderate demand from key sectors such as packaging, construction, and consumer goods. In Saudi Arabia, which witnessed the most significant price fluctuations, the downward trend was particularly pronounced. Seasonality played a crucial role, with demand typically subdued in certain periods, leading to heightened inventory levels. The correlation between supply excess and price adjustments was evident, as the market grappled with an abundant supply of post-consumer materials. Compared to the same quarter last year, prices fell significantly, reflecting the sustained negative sentiment. From the previous quarter in 2024, there was a modest increase of 2.44%, which was short-lived as the second quarter progressed. The price comparison between the first and second half of Q2 2024 showed a 2.64% decline, underscoring the persistent downward pressure. By the end of the quarter, the price of R-PP Injection Moulding Spot Ex-Riyadh in Saudi Arabia settled at USD 775/MT, epitomizing the overall negative pricing environment. This consistent decrease highlights the challenges faced by the market, driven by oversupply and tepid downstream demand, overshadowing any short-term gains experienced earlier in the year.
For the Quarter Ending March 2024
North America
In North America, the Recycled Polypropylene (R-PP) market reflected a pattern of progressive strengthening throughout the first quarter of 2024. Initiating the quarter with a cautious yet steady demand, the prices remained on par with the global market trends.
However, as the quarter unfolded, the North American market experienced a gradual uptick in prices due to a revival in demand from the packaging and consumer goods industries. By the onset of March, the price of R-PP had experienced a noticeable increase. Despite logistical challenges that could have stemmed from analogous protests affecting the European market, such as those by the farmers in Germany, the North American supply chain proved to be resilient.
Inventory levels were managed efficiently, avoiding any drastic supply shortages or overstock situations. As March progressed, prices reflected the buoyant market sentiment, with R-PP reaching a price point that was consistent with the global upward trend. The stability of the supply chain and the invigorated demand from key industries were the primary drivers behind this rise. In terms of figures, the market closed the quarter with R-PP prices reaching peaks that matched the robust demand, in line with the upward trend seen globally in the sector. In summary, the North American R-PP market in Q1 2024 concluded on a strong note, with March prices rising significantly, in a display of the market's ability to adjust to dynamic demands and maintain equilibrium despite potential disruptions.
APAC
In Q1 2024, the APAC region witnessed a significant decline in prices for Recycled Polypropylene (R-PP). Several factors influenced the market prices, leading to a negative pricing environment. In China, the largest market for R-PP, prices experienced the maximum changes. The overall trend in the market was characterized by decreasing prices as demand weakened and inventories remained high. One of the key factors influencing the pricing environment was the decreased demand from downstream industries, particularly the Packaging sector. This, coupled with ample inventory levels, resulted in reduced trading activities and downward pressure on prices.
Comparing the prices to the same quarter last year, there was a significant decrease of 21%. The decline from the previous quarter in 2024 was recorded at 13%, indicating a continued negative sentiment. Furthermore, there was a notable price difference between the first and second half of the quarter, with a decline of 9%. In China, the quarter-ending price for R-PP Injection Moulding was USD 725/MT (FOB - Shenzhen), reflecting the downward trend in prices. Overall, the pricing environment for Recycled Polypropylene in the APAC region in Q1 2024 was negative, with significant price declines driven by weak demand and high inventory levels.
Europe
In the first quarter of 2024, the European market for Recycled Polypropylene (R-PP) displayed a mix of stability and upward price movements, primarily influenced by the German market. The quarter began on stable ground with prices at USD 1650 per metric ton. However, as January progressed, demand fluctuations from the automotive and packaging sectors led to a decrease, with prices settling mid-month. Despite these early dips, the market began to pick up pace in February. An uptrend emerged, fuelled by a combination of increased demand, particularly from the packaging industry, and supply chain disruptions, such as the farmers' protests in Germany. These factors, along with a rise in Propylene prices, edged the R-PP prices upward by early March. Throughout March, the market witnessed a steady climb in prices. The month started with prices at USD 1690 per metric ton, and despite initial concerns over protest-related disruptions, the market showed resilience. By the end of the month, prices had increased to USD 1740 per metric ton. The month was characterized by a bullish sentiment, supported by strong demand from the downstream sectors, such as packaging and textiles, against a backdrop of sufficient inventory levels that helped to keep supply and demand in check. The market navigated through external disruptions and fluctuating demand to find a balance that supported a consistent rise in price levels.
MEA
In the MEA region, the R-PP (Recycled Polypropylene) market during the first quarter of 2024 showed a remarkable trend with a gradual uptick in prices despite a rather cautious demand. The quarter commenced with prices hovering around USD 745 per metric ton, as demand from consumer goods and packaging industries wasn't strong enough to drive significant price movements. However, as the quarter unfolded, prices saw a modest increase. This uptick, starting in late January, was driven by an intensified demand from the downstream packaging sector, coupled with a strategic consumption of inventory levels. By the end of February, this upward trajectory in demand led to a price rise. Throughout March, the R-PP market in the MEA settled into a stable sway with prices consistently at USD 780 per metric ton. The market struck a balance with adequate inventory levels to satisfy the packaging businesses' demand, resulting in a steady supply-demand scenario. Despite a noticeable trend in the feedstock Propylene market which suggested an increase in production costs, R-PP prices remained unaffected in March.
For the Quarter Ending December 2023
North America
Recycled Polypropylene (R-PP) pricing for the North America region in Q4 2023 followed a downward trajectory. The market observed a bearish sentiment influenced by a combination of weak demand from downstream packaging sectors and an oversupply situation, leading to subdued market dynamics and reduced purchasing activities. However, the sluggish demand for products manufactured from recycled materials, including packaging and household items, had a negative impact on market sentiments.
In the United States, the market exhibited stability with a lateral price trend, influenced by the economic pricing of virgin PP when compared to R-PP. Despite a decrease in spot price offers, the country experienced a slight decline in demand, primarily driven by weak fundamentals in downstream consumer goods and packaging industries. The augmented collection rate of post-consumer products has enhanced the availability of the base material, but challenges persist due to lacklustre consumption in key downstream sectors such as construction and packaging.
Overall, the North American R-PP market faced a decline in prices driven by weak demand, high supply, and reduced activity in key sectors. However, the potential growth in demand for recycled materials may contribute to a more positive market outlook in the coming periods.
APAC
The current quarter of 2023 for Recycled Polypropylene (R-PP) in the APAC region witnessed a mixed trend in prices. The market remained stable with moderate demand from the automotive and construction industries, but low demand from packaging industries resulted in a decline in prices. The availability of scrap PP material contributed to a low cost of product production, which kept the supply high. The bearish market sentiment was due to insufficient stocks among enterprises and unhealthy demand from the Asian market. The price of R-PP-Injection Moulding Spot Ex-Shenzhen decreased to USD 832/MT by the conclusion of the second week of December. The trend for China was negative, with a -10% change from the same quarter of the previous year. However, there was a 2% increase in price from the previous quarter of 2023. The reduction in prices was primarily due to unfavourable forecasts for demand from downstream industries involved in the production of recycled automotive parts and packaging materials. The Chinese R-PP market faced a demanding week due to weakened market fundamentals in the sector, resulting in a decline in prices. The quarter ending price of R-PP-Injection Moulding FOB Shenzhen in China was USD 832/MT.
Europe
Recycled Polypropylene (R-PP) pricing for the Europe region in Q4 2023 was marked by a declining trend. The market witnessed a bearish sentiment due to weak demand from downstream packaging sectors, coupled with high supply, leading to reduced purchasing activities and subdued market dynamics. Germany experienced a stable market with a lateral price trend driven by economic pricing of virgin PP in comparison to R-PP, despite reduced spot price offers. The country also witnessed a slight slump in demand, driven by weak fundamentals from downstream consumer goods and packaging industries. Additionally, an increase in the rate of collecting post-consumer products has made the base material more readily available, but weak consumption in key downstream sectors such as construction and packaging is creating challenges for recyclers. The latest price for R-PP - Natural Pellets FD Hamburg in Germany in Q4 2023 is USD 1680/MT. The quarter experienced a -20% YoY price change and a -7% price change from the previous quarter. The price comparison between the first and second half of the quarter in Germany showed a -2% change.
MEA
The Middle East (MEA) region's Recycled Polypropylene (R-PP) market declined in the fourth quarter of 2023. The market decline was driven by the economic pricing of virgin PP, leading to low demand for R-PP in the recycled Packaging and automotive parts manufacturing sectors. The market witnessed high supply, and insufficient stocks among the enterprises to counter the asked demand might rise the procurement activity, which may directly affect the product market sentiments. Moreover, the growing demand for products made from recycled materials, including packaging and household items, might influence the market sentiments. Saudi Arabia, the largest economy in the region, witnessed a bearish trend, with low demand from the downstream packaging sector leading to reduced purchasing activities and subdued market dynamics, resulting in a decline of 2.6% in prices. The quarter experienced a -2% price change from the previous quarter. The price percentage comparison of the first and second half of the quarter of the selected country declined. The quarter ending price of R-PP - Injection Moulding Spot Ex-Riyadh in Saudi Arabia was USD 760/MT.
