Global Polypropylene Markets Driven by Exponential Demand for Electric and Hybrid Vehicles
Date: 10-03-2023 On Thursday, domestic polymer producers including Reliance, IOCL, HMEL, MRPL, HPCL, Haldia, and Opal, decided to keep their PP, PE & PVC prices unchanged. This move was widely anticipated due to the ongoing discount schemes that these producers had put in place ahead of the expiration of their MOUs with processors. However, there seems to be some ambiguity regarding whether to go with the MOUs and their associated discounts until they expire or to purchase from the open markets where prices are currently lower. The discount values linked to the MOUs have not been declared yet, which adds to the confusion. The global market for Polypropylene (PP) reached an estimated volume of 70 million tonnes in 2021. Going forward, it is anticipated to register a robust compound annual global growth rate (CAGR) of 5.48% over the forecast period spanning 2021 to 2030. Recently, Nayara Energy laid the foundation of a new petrochemical project at Vadinar, Gujarat, India. This Polypropylene plant which will have an annual capacity of 450 thousand tonnes of polypropylene is estimated to be finished in 2023. The Polypropylene (PP) market worldwide is primarily dominated by the Indo-Pacific region, and this trend is expected to continue until 2030. The escalating demand for Polypropylene from the packaging and automotive sectors, particularly in emerging economies such as China, India, and Japan, is projected to propel the market in the Asia Pacific region. In North America, the increasing demand for Polypropylene from the food and beverage industry in countries such as the U.S., Canada, and Mexico is likely to drive the growth of the Polypropylene market. Polypropylene is widely used in the packaging industry, especially in food packaging, and in the automotive sector due to its low cost and excellent mechanical properties. It is commonly used to make various automotive components like bumpers, door trims, and instrumental panels, accounting for over 50% of plastic used in the Automotive Industry. PolyMart does not provide any assurances or guarantees regarding the reliability, accuracy, completeness, or quality of the information available on its website, app, or through any of its services. Therefore, the company is not responsible for any errors, omissions, loss, or damage that may result from the use of the website or app. It is advisable for users to exercise caution and independently verify any information obtained from these sources before relying on it for any purpose.
