June 2003

Trends and Resources

HP Impact: Polypropylene producers strive for low-cost position

The polypropylene (PP) industry continues to evolve as more challenges materialize for this polymer. The 1990s was an unusual development period; continuing high demand and high polymer..

Weirauch, Wendy, Hydrocarbon Processing Staff

The polypropylene (PP) industry continues to evolve as more challenges materialize for this polymer. The 1990s was an unusual development period; continuing high demand and high polymer pricing initiated more capacity expansion by several producers. Unfortunately, supply soon exceeded demand, and China's extreme cut-off of imports depressed the PP market by the mid-1990s. Low-entry barriers enticed many players to participate in the PP market. However, low polymer pricing and even lower utilization rates quickly vaporized profitability for PP producers. The PP industry is cyclic and very vulnerable to energy and feedst

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