Crude oil and Polypropylene

Crude oil is a raw material for polypropylene; their prices have moved together.

Crude oil (energy) and Polypropylene (chemical): 2 relationships.

How they are linked

1. Feedstock

Physical flow · Direct · Crude oil → Polypropylene

Polypropylene is made from crude oil: it is one of the raw materials its production routes start from.

2. Price link: feedstock cost

Cost and price · Strong · Both ways

Propylene from naphtha crackers and refineries ties polypropylene to oil. Brent moves with the resin proxy at 0.24 monthly and 0.72 yearly, a loose monthly tie as resin margins swing with supply.

• 0.24 monthly change correlation
• 0.72 12-month change correlation
• 0.18 fitted elasticity

Built from the site data on production routes, energy flows, industry value chains, input-output tables and prices.