Dangote’s Polypropylene Output to Reshape Market Dynamics, Cut Import Reliance

Key Highlights

• Polypropylene prices remain volatile, with regional differences driven by supply and demand.
• Dangote’s new 900,000 MT/year plant in Nigeria is set to reduce imports by 90%, positioning the country as a net exporter.
• Saudi Arabia & China PP plant updates: APC to start a new 400,000 MT/year line, while Shanghai Petrochemical plans maintenance for its 100,000 MT/year unit.
• RIL price revision: Deemed export prices were cut by ₹1,500/MT, while domestic prices remained steady except for F&F grades, which dropped by ₹2,000/MT.

Polymer Price: Polypropylene Prices Vary by Region

• In the polypropylene market, MARLEX PPHP RAFFIA (HGX030SP) is priced at ₹96,500/MT in Bhiwandi, while MRPL PPHP RAFFIA (HR003) is slightly higher at ₹97,000/MT in the same location. MRPL PPHP TQ FILM (HF010) commands a premium at ₹100,500/MT in Bhiwandi. 
• In Delhi, MRPL PPHP IM (HM012T) is available at ₹98,000/MT, while OPAL PPHP IM (MH13) is marginally higher at ₹98,500/MT. HMEL PPHP IM (M12RR) is priced at ₹98,000/MT in Bhiwandi. 
• Meanwhile, MRPL PPHP LAMINATION (HY035R) in Rajkot is the highest-priced variant at ₹1,03,000/MT, reflecting potential supply-demand dynamics and regional pricing variations.

Nigeria’s Dangote Refinery to Reshape Global PP Market 

• The launch of polypropylene production by Dangote Petroleum Refinery & Petrochemicals marks a pivotal shift in Nigeria’s supply-demand dynamics. 
• Historically, Nigeria has relied on imports to meet its 250,000 metric tons per annum polypropylene demand, significantly straining foreign reserves. 
• With Dangote’s state-of-the-art facility set to produce 900,000 metric tons per year, local supply is expected to surpass domestic demand, reducing reliance on imports by nearly 90%. 
• This development will directly benefit industries like textiles, plastics, and packaging, providing cost-competitive raw materials to local manufacturers. The availability of 77 grades of polypropylene enhances diversification, catering to various industrial applications. 
• Moreover, increased domestic production is expected to drive down prices, making Nigerian-made polypropylene more competitive regionally and potentially positioning the country as an export hub for West Africa.

Global PP Market Updates: Saudi & China Production Developments

• Advanced Petrochemical Company (APC) intends to start commercial operations at one of its newly constructed Polypropylene (PP) Lines during the first week of April, 2025. 
• The Lines are located in Jubail, Saudi Arabia with a new No.1 PP Line that has a production capacity of 400,000 Tons/Year meanwhile the No.2 PP Line is scheduled to come on stream in May, 2025.
• Shanghai Petrochemical is planning to shut its No.2 Polypropylene (PP) Unit on 4th April, 2025 for maintenance work until 19th May, 2025. The Unit is located in Shanghai, China with a production capacity of 100,000 Tons/Year.
• RIL reduced PP Deemed Export Prices by Rs. 1500/MT w.e.f. 1st April, 2025
• RIL rolled over PP Domestic Prices except for F&F grades which are reduced by Rs. 2000/MT w.e.f. 1st April 2025.

Market Expectations: Price Corrections Expected

• The market anticipates a major price correction as local production ramps up, easing cost pressures for manufacturers. This shift is expected to revitalize the textile sector, create new jobs, and stimulate investments in downstream industries.
• Additionally, Nigeria could emerge as a regional polypropylene exporter, enhancing trade balance and foreign exchange earnings. However, the government’s role in policy support and infrastructure development will be crucial in ensuring a smooth transition and maximizing industry benefits.