Polyolefin
PP
Buyer summary
What goes in
Propylene; comonomer for random/impact grades; catalyst; stabilizers
What moves cost
Propane or naphtha/FCC economics, propylene balance, utilization, grade and additives
Grades are not interchangeable
Homopolymer, random copolymer, impact copolymer, compounded PP
Available now: Route, cost drivers and grade questions · modeled input basket · timing and technical deep dive.
Buyer action panel
Turn the route into supplier questions.
What to verify
- Exact resin grade and specification
- Prime, recycled, filled or compounded status
- Production region and applicable route
- Quoted delivery and service boundary
What to request
- Current and previous index baseline
- Effective month and contractual lag
- Grade or formulation premium
- Freight inclusion and supporting reference
What may be negotiable
- Unexplained grade or conversion premium
- Index timing that differs from the contract
- Duplicated freight or service charges
- Outdated feedstock or intermediate baseline
Open supporting market evidence and engineering basis
Use this section to understand the evidence. To practice comparing a like-for-like supplier quote with the approved PP reference model, open the Cost Analysis Workspace.
Process-to-price guide
How this resin connects to energy and feedstocks
Modeled Cost Reference
How process quantities form an input basket
1.015 t means the base case allows 1.5% for saleable-yield loss. It is not a price range.
Calculation: Propylene cost contribution = 1.015 × current propylene reference price.
| Intermediate | Base quantity per 1 t resin | Cost contribution |
|---|---|---|
| Propylene | 1.015 t | 1.015 × current comparable Propylene price |
Verified intermediate reference
Complete mapped base-input basket
| Intermediate | Base quantity | Census trade unit value | Weighted contribution | Period and classification |
|---|---|---|---|---|
| Propylene | 1.015 t | $1039.4/t | $1055.0/t resin | 2026-06 · HTS 2901220000 |
| Reference raw-material basket | $1055.0/t resin | DERIVED | ||
Reference only: broad Census general-import customs unit values, not domestic spot prices or supplier quotations. A small trade quantity can make a unit value unrepresentative; conversion, additives, loss, freight and margin are not included.
WTI → PP direction check
Compare the upstream signal with a separate trade unit-value reference.
How to use this view: the two observed lines show direction only. Turn on timing lag to inspect whether inventory, transport or contract timing may delay the downstream reference. The offsets do not prove causation or a pass-through rate.
Show monthly values and calculation basis
| Month | WTI observed | WTI index | PP trade unit value | PP index |
|---|---|---|---|---|
| 2025-07 | $68.4/bbl | 100.0 | $1113.3/t | 100.0 |
| 2025-08 | $64.9/bbl | 94.8 | $1056.5/t | 94.9 |
| 2025-09 | $64.0/bbl | 93.5 | $1010.9/t | 90.8 |
| 2025-10 | $60.9/bbl | 89.0 | $978.5/t | 87.9 |
| 2025-11 | $60.1/bbl | 87.8 | $1083.7/t | 97.3 |
| 2025-12 | $58.0/bbl | 84.8 | $1146.8/t | 103.0 |
| 2026-01 | $60.0/bbl | 87.8 | $1007.1/t | 90.5 |
| 2026-02 | $64.5/bbl | 94.3 | $1005.5/t | 90.3 |
| 2026-03 | $91.4/bbl | 133.6 | $978.2/t | 87.9 |
| 2026-04 | $100.3/bbl | 146.7 | $1016.5/t | 91.3 |
| 2026-05 | $102.1/bbl | 149.3 | $1031.8/t | 92.7 |
| 2026-06 | $84.8/bbl | 124.0 | $1129.7/t | 101.5 |
How to read this: both indices start at 100 in July 2025. WTI is an upstream indicator; the PP series is a customs unit-value reference with a different commercial basis. Use the comparison to form supplier questions, not to infer a transaction price.
Buyer negotiation structure · illustrative
Separate the technical floor from supplier-specific leverage.
Broad import cross-check: $1129.7/t · below the illustrative range — revise the cost basis or assumptions before treating the low case as a floor
Negotiation leverage: throughput, utilization, equipment depreciation, energy, labor, yield, overhead allocation, grade complexity, freight and service boundary can move a supplier within the range. Integration can lower transfer cost but higher allocated overhead can offset it; a specialist compounder may compete through utilization and leaner indirect cost.
Bottom-up calculation logic
Depreciation/kg = equipment CAPEX ÷ useful life ÷ annual saleable kg. Conversion/kg adds labor, energy, maintenance, indirect overhead, packaging and yield loss. Reference selling price = pre-margin cost ÷ (1 − 6%).
Worked reference: the cost blocks demonstrate negotiation arithmetic and are not an observed industry average or supplier quote.
Engineering quantity range and basis
Low, base and high values show how formulation, conversion and saleable-yield conditions can change material demand. They are quantities per tonne of output, not resin prices or predicted market ranges.
| Intermediate input (t/t product) | Low | Base | High |
|---|---|---|---|
| Propylene | 1.005 | 1.015 | 1.030 |
Calculation basis: 1.000 t saleable PP. Use the base case as the comparison midpoint and replace it when a supplier provides a route- and grade-specific material balance.
Regional route lens
- U.S.: PDH and refinery propylene are important because ethane crackers make little propylene.
- Europe: naphtha cracking creates a broad co-product slate; allocation and energy matter.
- Asia: naphtha, refinery and PDH routes coexist; country and route must be identified.
ENGINEERING REFERENCE: use these values to understand calculation structure; actual recipes, yields and plant economics vary.