North American polypropylene producers won't see this year a repeat of 2021, when stronger-than-expected demand as the pandemic eased after vaccines met extreme supply tightness, said Hydrocarbonprocessing.
This year is different not just because of startups in Louisiana and Canada that will add resin but also because demand isn't as strong.
“Pretending to maintain last year's margins is hard considering we are in a pretty balanced market, with all this new capacity about to be added up, and taken to a market with a weakened demand environment,” said a market participant, speaking on the condition that his name be withheld. North American supply will soon increase by 10%, the source estimated.
Officials at Braskem, North America's biggest polypropylene producer, said in May, during the first quarter 2022 earnings call, that they projected for 2022 spreads similar to those from last year. Braskem, with five polypropylene plants in the U.S., all located in the northeast and in the Gulf Coast, is the biggest polypropylene producer in North America. Based in Sao Paulo, it is also the biggest petrochemical company in Latin America.
The global polypropylene market is worth about USD87 B annually, according to a press release from Future Market Insights. BASF, Dupont, Eastman Chemical, Exxon Mobil, Formosa, INEOS, LyondellBasell, SABIC, Total, and Westlake Chemical are some other global polypropylene market participants.
As per MRC, Braskem (Sao Paulo, Brazil) said it is supporting the efforts by Danish company Plastix (Lemvig) to market recycled plastics fibre waste of old fishing nets and other marine debris collected at various ports.
mrchub.com