Dangote Refinery Set to Reshape Polypropylene Market and Global Supply Dynamics

In the domestic market, PP Raffia is priced at Rs 92/kg ex-godown, PP film at Rs 100/kg ex-godown, PPCP at Rs 99/kg ex-godown, and PP Laminate at Rs 102/kg ex-godown.

Polymer Price

  • PP Raffia Rs 92/kg levels Ex Godown.
  • PP film Rs 100/kg levels Ex Godown.
  • PPCP Rs 99/kg levels Ex Godown.
  • PP Lamination Rs 102/kg levels Ex Godown.
  • LLDPE(-1) Rs 86.5/kg Ex Mundra/Bhiwandi.
  • LDPE prices are around (±0) Rs 116/kg Ex Mundra/Bhiwandi.
  • HDPE PE100 natural (±0) Rs 90/kg Ex Mundra/Bhiwandi.
  • HDPE PE100 black (±0) Rs 91/kg Ex Mundra/Bhiwandi.
  • HDPE HM (±0) Rs 90/kg Ex Mundra/Bhiwandi.
  • HD Blow Molding (±0) Rs 91/kg Ex Mundra/Bhiwandi.
  • Low K (P700) Rs 81.50 Ex Nhava Sheva/Mundra.
  • Low K (B57) Rs 86.00 Ex Nhava Sheva/Mundra.
  • LG LS100H Rs 76.75 Ex Mundra/Bhiwandi.

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Polmyer Supply and demand

  • The polypropylene (PP) market is experiencing significant changes, particularly in Nigeria. Dangote Oil Refinery, the largest in Africa, is set to capture Nigeria's $267.7 million polypropylene market starting this month, with plans to reduce Nigeria's reliance on imported polypropylene. This move is expected to impact the global supply and demand dynamics of PP.
  • Currently, Nigerian manufacturers import significant quantities of polypropylene for various uses, including packaging, textiles, automotive parts, and medical equipment. The refinery's production will cater to the growing demand for PP in Nigeria, which is driven by the packaging, automotive, textiles, and consumer goods industries.
  • These developments indicate a shift in the global PP market, with Nigeria emerging as a significant player. As the Dangote refinery ramps up production, it will be interesting to see how the market dynamics evolve.

Polymer News

  • The country's oil minister Hardeep Singh Puri said India is expected to receive investments worth $87 billion in the next decade to meet the nation's rising demand for petrochemicals. India consumes 25 to 30 million metric tons of petrochemical products annually, currently valued at $220 billion, and it is expected to grow to $300 billion by 2025.
  • Tianjin LG Bohai Chemical intends to shut its Polyvinyl Chloride (PVC) plant for planned maintenance work starting from the end of October until early November 2024. The plant is located in Dagu, China.
  • Hyundai Chemical is aiming to shut its cracker in Q1 2025 for maintenance work. The cracker is located in Daesan, South Korea.
  • Supreme Petrochemicals reduced GPPS prices by Rs 2000/MT and HIPS by Rs 1000/MT w.e.f. 19th October 2024.

Explore more industry updates and PP news here!

Expert Opinion

  • The purchase pulse was weak, with most buyers staying on the sidelines. Import offers were limited. Hence, buyers were seen opting to secure their requirements from local sources.