Polyolefin Market Price, Size, Share, Growth Insights 2030

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Polyolefin Market size was valued at USD 249.5 billion in 2023 and is expected to grow at a 4.8% CAGR from 2024 to 2030. Polyolefins are manufactured from natural gas & oil by the polymerization of ethylene and propylene. Polyolefin is made from monomers, hydrocarbons, and olefins which have a high processability level, prolonged durability, and chemical stability. Polyolefins are thermoplastic polymers, used in various applications such as packaging, consumer goods, fibers & textiles. Increasing population and rapid industrialization are expected to drive the demand for polyolefins market. In addition, the use of plastic materials is increasing due to the growing food and general packaging industries which is expected to drive the growth of the polyolefins market over the forecast years. In addition, polyolefins are also used in the automotive industries for the manufacturing of interior and exterior parts owing to their high strength, low weight, and durability. Thus, the growing demand for lightweight vehicles for fuel efficiency is expected to boost the growth of the polyolefin market over the forecast period.

Furthermore, the growing use of polyolefins in the manufacture of pipes, roofing membranes, and insulation materials owing to their chemical stability along with the rowing construction industry is anticipated to boost the growth of the polyolefin market over the forecast period. However, the restriction on the use of plastics, strict regulations, and rising environmental concerns regarding the use of plastics is expected to hinder the growth of the polyolefin market in the forecast years. Moreover, technological advancement and the growing trend of using sustainable polyolefins such as biobased and biodegradable polyolefins are expected to provide opportunities to the market players in the growth of the polyolefin market over the forecast years.  

Polyolefin Market Key Developments:

• In August 2022, SABIC announced the SABIC SK Nexlene, a joint venture between SABIC and SK Geo Centric for the expansion of their manufacturing plants in South Korea and Ulsan.

For the Quarter Ending March 2024

North America 

Throughout the first quarter of 2024, the North American Polyolefin Plastomer (POP) market found itself navigating a period of oversupply, which exerted downward pressure on prices. The market eventually found its footing with stabilized prices in March, holding at USD 2,800 per MT on FOB – USGC basis. 

This plateau in pricing came amidst a landscape of moderate demand, particularly from sectors such as construction and consumer goods, which continued to show resilience. The industry was influenced by fluctuations in natural gas prices, underscoring the connection between energy markets and polymer pricing. Manufacturing activities, as indicated by the Purchasing Managers' Index, suggested a contraction with easing new orders, impacting the POP demand. 

The slow growth in the service sector further complicated the market dynamics, leading to a mixed economic sentiment. Despite these challenges, the supply chain held strong, supported by significant producer efforts to meet both global and local demands. As the quarter concluded, the market reflected a complex interplay of robust demand in specific sectors juxtaposed with the overall environment of high inventories and tempered consumption. 

APAC

In Q1 2024, the Polyolefin Plastomer (POP) market in the APAC region, and particularly in China, experienced relative stability with slight price adjustments. The prices in March remained consistent with those in January, signifying a period of equilibrium in the market. This stability came despite a downtrend in demand from significant sectors such as automotive, where both total vehicle sales and new energy vehicle sales declined substantially. On the production front, manufacturing activities showed resilience, with the Purchasing Managers' Index (PMI) hovering above the contraction threshold. While the automotive sector faced headwinds, the construction and consumer goods sectors sustained robust demand for POP, indicating a shift in sectoral performance affecting the overall market sentiment. The market dynamics were characterized by an oversupply situation, mainly due to high inventory levels, which put downward pressure on POP prices. Major industry players continued to play critical roles in the supply chain, ensuring adequate supply amidst varying demand across industries. The end of Q1 saw the market grappling with an intricate landscape of fluctuating demands, industry-specific needs, and the ongoing challenge of aligning supply with consumption patterns.

Europe

In the first quarter of 2024, the European market for Polyolefin Plastomer (POP) displayed a steady state of balance between demand and supply, particularly influenced by ongoing construction activities. Urbanization and an increase in disposable income played significant roles in driving the demand for POP within construction-related applications, helping to stabilize the market despite minor disruptions from other sectors. In Germany, the POP market was reflective of broader European trends, achieving a delicate equilibrium despite facing external economic pressures and supply chain variabilities. These factors introduced some volatility into market forecasts, though the overall conditions remained stable. The price of POP in March 2024 settled at USD 2820 per MT on FD – Hamburg basis, illustrating a slight adjustment and signalling a stable market outlook. Market sentiment varied, with robust demand from the construction sector counterbalancing challenges in the manufacturing and automotive sectors, which faced issues related to electric vehicle development and sales. Overall, the POP market in Europe managed to navigate through diverse demands and economic shifts, focusing on achieving long-term stability and responding adaptively to the changing economic landscape.

For the Quarter Ending December 2023

North America

The North American market for Polyolefin Plastomer (POP) in the fourth quarter of 2023 (Oct-Dec) was characterized by several key factors. This quarter, the market experienced stability with moderate supply and demand levels. The availability of inventory was sufficient, and industries operated with moderate supply rates. However, there were no reported plant shutdowns during this period. 

Second, the demand for POP in the United States was influenced by the performance of the automotive industry. Despite a drop in light vehicle sales in October due to strikes at major automakers, the market rebounded in November with improved vehicle availability and increased sales. This contributed to the overall demand for POP in the US market.

 Finally, in terms of pricing, there was a slight decrease of 2% from the previous quarter. In Dec 2023, a price of POP in USA was assessed by USD 3200/MT FOB USGC. Overall, the POP market in North America during the fourth quarter of 2023 was characterized by stability in supply and demand, with the automotive industry playing a significant role in driving demand in the US market.

APAC

Polyolefin Plastomer (POP) pricing in the APAC region during the fourth quarter of 2023 was influenced by several key factors. In Oct 2023, the Chinese market, which experienced strong demand for POP due to the growth in the automotive sector. The Chinese government's incentive policies and improving economic climate led to a surge in consumer demand for passenger vehicles, resulting in increased demand for POP. Additionally, the introduction of tax breaks for new energy vehicle purchases further stimulated the market. However, the overall demand for POP was moderated by the sluggish performance of the construction industry. Furthermore, the price of POP in China showed a 5% decrease in the second half of the quarter compared to the first half. This can be attributed to the seasonal market trend, with the growth in the downstream automotive industry remaining flat. In terms of pricing trends, the price of POP in China experienced a slight decrease of 3% compared to the previous quarter. This decline can be attributed to the destocking of inventories as manufacturers and traders focused on clearing out their stocks.  In terms of year-on-year price changes, the price of POP in China saw a 7% increase compared to the same quarter in the previous year. This highlights the overall growth in the market. However, it is important to note that these price changes are specific to China and may vary in other countries within the APAC region. In Dec 2023, the price of POP in China is USD 2670/MT CFR Qingdao.

Europe

In the fourth quarter of 2023, the European market for Polyolefin Plastomer (POP) witnessed a challenging period. The market was impacted by several factors that influenced the pricing and demand for POP. In this quarter, the German automotive industry, a major consumer of POP, experienced a decline in new car registrations, leading to subdued demand for POP in Germany. Additionally, the European construction industry faced uncertainties, with reduced demand for new buildings due to rising interest rates and expensive materials. This further contributed to the weakened demand for POP in the region. Moreover, the global supply chain faced disruptions, causing moderate supply levels of POP. However, no plant shutdowns were reported during this period.  In terms of pricing trends, the price of POP in Germany remained relatively stable throughout the quarter, with a slight decrease of 3% compared to the previous quarter. Overall, the European POP market faced challenges in the fourth quarter of 2023, with subdued demand from the automotive and construction sectors. The pricing of POP remained relatively stable in Germany, reflecting the market conditions and the lack of significant price fluctuations. In Dec 2023, the price of POP in Germany was USD 2850/MT FD Hamburg.

For the Quarter Ending September 2023

North America

Polyolefin Plastomer (POP) prices in the North American market during the third quarter of 2023 exhibited a mixed pattern. They saw a significant increase in July, only to subsequently decline consistently in the following months. The price of POP in the US market went up in July due to strong demand, driven by a substantial rise in vehicle sales in the US (more than 20% in June) and Western Europe (approximately 19.6%). This led to higher POP procurement in July. In the United States, the Manufacturing Purchasing Manager’s Index (PMI) for June dropped to 46.3 from 48.4 in May, primarily because of reduced manufacturing activity, a decline in new orders, lower input costs, and increased destocking, which indicated reduction in POP supply, which supported the surge in its prices. However, for the rest of the quarter, the POP market experienced a noticeable decline in prices. This decrease can be attributed to the continuous fall in the prices of the raw material, Ethylene, which had a downward impact on the overall production costs of POP. Interestingly, despite robust market sentiments in the global automotive and tire sectors, the market dynamics favoured oversupply, resulting in a significant decrease in pricing trends.

APAC

Unlike North America, Asia-Pacific region witnessed consistent decline in Polyolefin Elastomer (POP) prices during the third quarter of 2023. In the third quarter of 2023, the Asian new vehicle market experienced significant growth, mainly due to the ongoing recovery from the COVID-19 lockdowns that began to ease in the latter part of the previous year. This recovery was further facilitated by an improved supply of semiconductors, allowing automotive manufacturers to increase production and reduce order backlogs. Despite strong demand from the automotive industry, the prices of POP in the Asian market have been consistently decreasing. This price decline can be attributed to several factors, including a simultaneous drop in the prices of the key raw material, Ethylene, and increased competition in the market. These factors have combined to reshape the pricing dynamics in the POP sector significantly. The reduced cost of Ethylene, has directly impacted manufacturing expenses, necessitating a downward adjustment in the prices of the final products. Additionally, heightened competition has led manufacturers to strategically lower their prices to maintain their competitiveness in the industry.

Europe

In the European market, the Polyolefin Plastomer (POP) sector witnessed a consistent and noteworthy increase in prices during the first month of the third quarter. This price surge was primarily attributed to a substantial surge in demand from the automotive industry. Additionally, the escalating costs of crude oil and Ethylene further contributed to the initial uptick in the price of POP. However, an interesting development occurred in the subsequent two months, where a gradual and sustained decline in POP prices became evident. This downward price trend can be predominantly ascribed to a substantial reduction in production expenses. The driving force behind this cost reduction was the extended period of decreasing raw material costs, notably in the case of Ethylene, which serves as a crucial component. This decrease in the costs of raw materials had a direct and pronounced impact on the final pricing of POP. As a result, the market price of POP exhibited a continuous and discernible decline. This ongoing price descent occurred despite the backdrop of positive advancements within the automotive sector, which continued to demonstrate growth.

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For the Quarter Ending June 2023

North America

In Q2 2023, the North American market showed a mixed trend in Polyolefin Plastomer (POP) prices. Prices fell sharply in April, rose sharply in May, and fell again in June. The Polyolefin Plastomer market declined in the US market as the automotive sector struggled with rising interest rates and challenging economic conditions. This ultimately reduced demand in the Polyolefin Plastomer market, driving prices down significantly throughout April. In the United States, prices for Polyolefin Plastomers soared in May following a surge in demand in sectors as diverse as packaging, consumer goods, and automobiles. This increased demand has created a demand-supply imbalance, driving up the price of Polyolefin Plastomers. However, the price of Polyolefin Plastomer (POP) in the US market fell in June due to an oversupply of the material. The price of POPs fell as the supply of POPs far exceeded what the market needed to meet demand. The US manufacturing Purchasing Managers Index (PMI) fell to 46.3 in June from 48.4 in May. The further decline in PMI was due to lower new orders for some products, lower input costs, and higher destocking. However, POP prices were unaffected by his PMI drop in the country.

APAC

Polyolefin Plastomer (POP) prices continued to fall in the first two months of Q2 2023 before stabilizing over the last week. The continued struggles of declining demand and high inventories in automotive industry of China were hurting the Polyolefin Plastomer market. As a result, demand for Polyolefin Plastomers in the market ultimately declined which caused a significant fall in POP prices throughout April. Furthermore, Chinese Polyolefin Plastomer prices fell in May despite strong demand from downstream industries. This price drop was due to overflowing stocks in the market. Though there was an adequate demand from sectors such as construction and consumer goods, the supply of Polyolefin Plastomers exceeded immediate demand. Excess inventories resulted in oversupply and downward pressure on prices. Despite strong demand from the downstream industry, the market was unable to absorb excess inventories, driving Polyolefin Plastomer prices in China down throughout May. Polyolefin Plastomer prices stagnated in the Chinese market in June. However, June's POP price remained unchanged as the supply and demand dynamics stabilized and supply was sufficient to cater to the demand.

Europe

In the second quarter of 2023, the European market showed a mixed trend in Polyolefin Plastomer (POP) prices. Prices fell sharply in April, rose sharply in May, and fell again in June. April saw an improvement in market sentiment of the downstream automotive industry despite falling Polyolefin Plastomer prices in the Spanish market. Ultimately, poor performance of the replacement tire industry led to lower Polyolefin Plastomer prices, resulting in lower Polyolefin Plastomer purchases. However, strong demand from the automotive and pharmaceutical industries made Spain's Polyolefin Plastomer prices soaring in May. In the automotive sector, demand for Polyolefin Plastomers, which are essential in the manufacture of tires and other auto parts, increased. As a result, increased demand from these sectors has significantly increased the price of Polyolefin Plastomers on the Spanish market. In Spain, the market value of Polyolefin Plastomers fell in June. According to the Spanish Automobile Manufacturers Association (ANFAC), the number of passenger car registrations in June increased by 13.3% from a year earlier. The Spanish market suffered from weak demand for POP despite the booming market dynamics of the downstream automotive industry. The manufacturing Purchasing Managers Index for the Spanish market fell to 48.0 in June, indicating a slowdown in industrial activity in several sectors. However, the Polyolefin Plastomer market was unaffected by his PMI drop in the country.  

For the Quarter Ending March 202

North America

The Polyolefin Plastomer market had mixed sentiments in the first quarter of 2023, which was aided by changing dynamics of supply and demand. Prices for Polyolefin Plastomer climbed in January, followed by a stable pricing trend in February. However, as the quarter's end approaches, prices have started to fall. As soon as the semiconductor supply started to improve, the automotive industry started to rebound, but it was severely harmed by the economic turbulence brought on by the failure of two big US banks. The automotive industry used less Polyolefin Plastomer because of the recession's harsh effects, which eventually led to a drop in price. Hence, In the USA, the assessed price of Polyolefin Plastomer (POP) was USD 4000/MT FOB USGC during March.

APAC

The Polyolefin Plastomer market in the Asia-Pacific region displayed conflicting sentiments. In the Asia-Pacific region, the price of Polyolefin Plastomer increased till February before declining in March. As China started to destock its automobile inventories, the ailing Asia-Pacific automotive market began to show signs of deterioration swiftly. Tesla decreased the market value of cars because of high inventories and low sales, which sparked a pricing war in the Chinese auto industry. Hence, the manufacturing of automobiles decreased because of the automotive industry's strong destocking efforts, which also influenced the demand for Polyolefin Plastomer. Thus, the price of Polyolefin Plastomer (POP) assembled at USD 3300/MT CFR Qingdao.

Europe

The Polyolefin Plastomer market across Europe revealed mixed emotions. The cost of Polyolefin Plastomers had been falling for the first two months of the quarter before a large price surge in March. As China's market started to open more in March, prices for Polyolefin Plastomer increased. An increase in the supply of semiconductors allowed for this surge. The need for Polyolefin Plastomer in the automobile industry increased along with the increased production of automobiles. Additionally, during the quarter, Polyolefin Plastomer inquiries increased due to the underserved automotive demand in the European market, which increased auto sales. Due to these factors, the cost of Polyolefin Plastomer (POP) in Germany in March was USD 3400/MT FD Hamburg.

For the Quarter Ending December 2022

North America

The market value of Polyolefin Plastomer in the North American market showed contrasting attitudes in the fourth quarter of 2022 due to variations in downstream demand from various industries. In line with the uneven growth of the construction and automobile industries, there were ups and downs in demand for Polyolefin Plastomer. Upstream costs and fluctuating manufacturing costs both had an impact on the market growth for Polyolefin Plastomer. As a result, the price trend for Polyolefin Plastomer decreased in October, increased in November, then decreased once more in December. The destocking in December also contributed to the decline in the price of Polyolefin Plastomer as the year came to an end. As a result, Polyolefin Plastomer (POP) estimated value in the USA was USD 3800/MT FOB USGC in December, which was 5% lower than the price in September.

APAC

Unlike the North American market, the price of Polyolefin Plastomer (POP) in the Asia-Pacific region surged in October, only to decline in November and then become stagnant for the rest of the quarter. In the fourth quarter of 2022, the market value of polyolefin elastomers in the APAC market displayed conflicting attitudes because of changes in downstream demand from diverse industries. There were ups and downs in demand for Polyolefin Plastomer, which was consistent with the uneven expansion of the construction and automotive industries. Polyolefin Plastomer's market growth was impacted by both upstream costs and variable production costs. As a result, the assessed value of Polyolefin Plastomer (POP) in China was USD 3045/MT CFR Qingdao in December, which was 8.4% less expensive than the cost in September.

Europe

Amidst changes in downstream demand from various industries, the market value of Polyolefin Plastomer in the European market displayed conflicting attitudes in the fourth quarter of 2022. Polyolefin Plastomer demand fluctuated along with the unequal expansion of the construction and automotive sectors. The inconsistency in the Polyolefin Plastomer market was also influenced by upstream costs and variable production costs. As a result, the price trend for Polyolefin Plastomer declined in October, climbed in November, and then decreased once more in December. The price drop of Polyolefin Plastomer as the year came to a finish was also influenced by the destocking in December. The estimated value of Polyolefin Plastomer (POP) in Germany was USD 3480/MT FD Hamburg, which was 1.9% lesser than the price in September.

For the Quarter Ending September 2022

North America 

During the third quarter of 2022, Polyolefin Plastomer prices initially showed a bullish trend; however, the prices have fallen sharply since, owing to weak demand sentiment and ample supply. Initially, the demand dynamics outstripped the available supply as the supply chains remained under pressure in the US. However, the demand dynamics deteriorated as the speculations around a US recession intensified, resulting in stabilization in volume offtakes from key industries, including automotive and construction industries. Supply chains also improved as the freight charges dropped drastically from Asia to North American routes. Thus, after the conclusion of Q3, Polyolefin Plastomer prices were assessed at USD 4000 per MT FOB USGC. 

APAC

The lack of inventories and stable demand dynamics in the Asian markets prompted the market participants to increase the prices of the available material. Demand from the downstream industries remained steady as the market participants looked to procure the material ahead of the festive season and holiday season in the Asian region. The prices rose consistently throughout the quarter; Polyolefin Plastomer prices rose 4.7% in July, then again around 3% in August, and finally settled at USD 3325 per MT on CFR basis in September 2022.

Europe

Polyolefin Plastomer prices dipped consistently in the European market throughout the third quarter of 2022 owing to ample inventory levels and cheaper imports from the US. High energy costs catapulted the overall cost of production, which prompted manufacturers to increase the prices; however, weak demand meant there were limited queries for the material, which forced manufacturers to cut the production rates. However, cheaper imports from the Asian region compensated for the production cuts in the European market. Hence, there was always ample availability of more inexpensive materials in the domestic market during Q3. Thus, after the conclusion of Q3, Polyolefin Plastomer prices were assessed at USD 3546 per MT on an FD basis.

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