North American prices for polypropylene resin continued to slide in November, falling an average of 3.5 cents per pound.
Regional prices for the engineering resins nylon, polycarbonate and ABS also experienced price drops in the second half of 2024.
The PP decline followed a similar directional move for polymer grade propylene feedstock, according to sources contacted by Plastics News. PP prices were down 6 cents in October and 4 cents in September after increasing by 2 cents in August.
Combined with previous increases and decreases, PP prices now are down a net of 6.5 cents so far in 2024. In a recent market report, PP supplier Blue Clover of New York said that the market "has seen a big pullback in PP operating rates the past couple of months."
"This lever was pulled to decrease the PP days of supply inventory number, which was too high," the report said. "Simultaneously, PP producers and distributors lowered pricing to sell excess inventories heading into the end of the year. These two measures are close to successfully rebalancing the PP excess supply."
The report also cited industry data showing that domestic PP demand was up 3 percent in October vs. September, after dropping 12 percent from August to September. Blue Clover expects spot opportunities to buy PP at low prices through the end of the year, but the firm then expects PP supply "to be more snug when we start 2025 and for prices to rally."
In engineering resins, nylon 6 and 6/6 prices fell an average of 15 cents in the second half of 2024 after producers were able to achieve gains averaging 18 cents in the first half. For PC and ABS, prices for each material dipped 5 cents in the second half after rising an average of 10 cents in the first half.
"It's been a challenge for all of these [engineering resin] materials in the second half," a buyer in the Midwest U.S. said. "Only a few markets like solar are up. Demand everywhere else is down, whether it's automotive or construction or electrical/electronic."