There is no doubt that polypropylene is the most versatile thermoplastic whose applications and fields of application spread across a wide variety of industries: packaging, automobile, textiles, and consumer goods.  In recent years, polypropylene has shown significant volatility in the market.


1.  Factors influencing polypropylene price
1.1.  Crude oil and natural gas prices

Polypropylene is mainly produced from propylene, a secondary product from the processing of natural gas and crude oil distillation.  Due to this, polypropylene price is extremely affected by propylene pricing fluctuations, specifically oil and natural gas pricing.  If there is an increase in crude oil or natural gas pricing, the price of polypropylene supply and production costs will rise.  In contrast, the reduction of them will lead to a decrease of polypropylene prices.

1.2.   Supply and demand dynamics
Polypropylene price can be significantly affected by the delicate balance between the supply of polypropylene and demand for it. Polypropylene prices tend to rise when there is a high demand for this plastic material due to limited availability in the market.
On the other hand, when buyers’ needs exceed the supply of polypropylene, there is a likelihood for prices to fall due to sellers attempting to sell off their stocks.

1.3.   Market competition
Their polypropylene price and strategies may be affected by the level of competition among the producers and traders.

1.4.   Transportation and logistics costs
The final polypropylene price might include transport e.g. freight, warehousing and forwarder costs from production sites to end-users.   Fuel prices, transportation infrastructure and supply chain disruptions, for example, can drive polypropylene pricing higher.

1.5.   Trade policies and tariffs
The global availability and pricing of polypropylene could depend on import/export tariffs, trade agreements, and other actions a government may take in the regulatory arena.   For example, there is an increase in tariffs for the imports of polypropylene and the smooth free flow of polypropylene that may lead to the advantage of the polypropylene price.

1.6.   Sustainability and environmental regulations
The sustainability perspective and changing environmental policies that are associated with emissions, waste treatment, and recycling are all factors that may influence cost structures or price strategies within the polypropylene manufacturing sector.   With such developments, there is bound to be a change in the polypropylene price.


2.   Polypropylene price forecasts
The global polypropylene market is heavily influenced by fluctuations in crude oil prices.   This creates volatility in polypropylene price.   According to data from the U.S. Energy Information Administration (US EIA) crude oil prices are expected to increase through 2024.   Demand is anticipated to rise faster than supply.

In the Chinese market, it is forecasted that polypropylene price will gradually increase.   This is likely to continue to be the case throughout 2024, driven by the rise in global crude oil prices during 2024.   The increase in polypropylene costs in China is also expected to be an upward steady trend.

According to Grand View Research, the price of polypropylene is predicted to continuously increase in China.

About LFT-G's polypropylene products

With nearly 15 years of industry experience, LFT-G has established itself as a renowned manufacturer of LGF&LCF reinforced plastic compounds.   The company offers a diverse portfolio of high-quality Polypropylene plastic solutions to cater to a wide range of application needs.

To learn more about our extensive range of polypropylene plastics, please visit www.lft-g.com or contact us for consulting polypropylene price now.