July 2011

Polypropylene once again has its story rooted in the economics of the refinery segment more than the chemical space.  We have seen maximum ethane cracking and weak demand for propane as evidenced in the growing levels for C3.  This suggests that the trend continues of more feedstock for PP coming out of refineries.

Currently, it would appear that Polypropylene has found a bottom only down .04 cpp for July.  This has caught many buyers by surprise that were waiting for a continued decline.  Keep an eye on crude oil and macroeconomic issues to take your cues for further price volatility in Polypropylene.  (read full article)