Spot US polypropylene climbs to highest pricing in about 25 months

Houston — The spot US polypropylene export price rose to the highest level in 25 months, based on little supply availability and demand remaining high, sources said.

S&P Global Platts assessed US spot export PP up $22 day on day Dec. 21 at $1,455-$1,477/mt (66-67 cents/lb) FAS Houston basis, with rail car pricing discussed at 63-64 cents/lb.

The FAS assessment includes an additional 3 cents/lb to cover packaging and transportation costs.

The previous high for US PP was on Nov. 13, 2018 at $1,499-$1,521/mt (68-69 cents/lb).

Since Jan. 2 and the year-ago date, which were assessed at the same pricing, the assessment has rose $551, or 60.2% from $915/mt (41.5 cents/lb) FAS Houston.

"The PP export market has been high and dry for some time," one source said.

A separate source said that demand is strong, and they expect it to remain that way into the next quarter.

Pricing has been climbing since May 17 when pricing was assessed at $849/mt (38.5 cents/lb) FAS Houston, with pricing rising up about $617 or 72.7% since that date.