ExxonMobil shaves its PP resin prices in US

ExxonMobil Chemical Co. has announced that it will reduce US polypropylene (PP) resin prices by as much as $0.05/lb., according to PlasticNews. The move will take place regardless of any price change for propylene feedstock, market sources said.

It is reported that prices for the firm’s random and impact copolymer PP grades, as well as homopolymer PP used in thermoforming and metallocene homopolymer, will be reduced by $0.03/lb. All other grades of homopolymer PP produced by ExxonMobil will be reduced by $0.05/lb. 

The announcement comes with market watchers expecting regional PP prices to be flat in May after falling an average of $0.03/lb. in April. Demand for the material has been solid, but market prices are being impacted by a surge in availability of imported PP. South Korea, Brazil, Saudi Arabia, Colombia, Thailand and Singapore have all been active in importing PP into North America.

Regional PP supplies are constrained as a result of large amounts of capacity being shut down during the recession. Combined with increased demand, that means that operating rates for PP production in the region are in the high 90s.