North American polypropylene resin prices ticked down an average of 1 cent per pound in August, following a slight decline in the price of polymer-grade propylene (PGP) feedstock. Engineering resin prices in the region also saw slightly lower prices in recent months.
The 1-cent August drop comes after regional PP prices had been flat in July. It declined 4 cents in June and has fallen a total of 23 cents since April. Those declines also matched price drops seen for PGP feedstock. PP prices had increased a total of 27 cents in the first three months of 2023.
In a recent market report, PP supplier Blue Clover LLC of New York cited data from the American Chemistry Council showing PP inventories have moved lower for two consecutive months because of stronger demand and larger PP export volumes.
ACC also reported that U.S. PP demand in June was the strongest it's been since February 2022, adjusted for number of days in a month. The average days of supply of PP inventory also have tightened, dropping to 35 from a high of about 43 earlier this year.
"All of these signs point to a tighter PP market compared to what we have been used to in the April through June months," Blue Clover officials said.