Oil Chain Impacts on Polypropylene

Geopolitical instability in the Middle East is generating volatility in the global petrochemical market. Since polypropylene (PP) — the main raw material used in the production of woven polypropylene (WPP) sacks and FIBC Bulk Bags — is derived from the oil and gas supply chain, this scenario is already putting pressure on costs and has altered supplier behavior.

In recent weeks, resin price increases have occurred, and further increases are already being signaled for the coming weeks. Global market prices continue to escalate to very high levels, putting pressure on costs worldwide.

Furthermore, material supply has been reduced, and scarcity is already a reality.

These repercussions of the uncertainty surrounding the production and distribution chain for oil and its derivatives are part of our reality.

We recommend paying close attention to purchasing and inventory planning. Monitoring the evolution of this scenario closely is essential for safer decisions, aligned with the gravity of the situation.

Embrasa continues to monitor the global scenario and will keep its clients informed of any relevant changes.

We stand together to ensure that excellent products are packaged, protected and distributed with the quality they deserve.