ADI evaluated global demand for homopolymer, impact copolymer, and random copolymer grades, emphasizing crystalline HCPP and reactor-TPO segments. The analysis integrated utilization rate forecasts and regional cost curves to model trade flows across Middle East, Asia Pacific, and North America. Operational risks, including plant debottlenecking and feedstock shifts toward shale-based propane, were contrasted against tightening margins over a 25-year period.
The client
Integrated energy and chemical companies
The situation
Strategic uncertainty regarding long-term PP demand-supply balances and the erosion of specialty grade price premiums.
ADI’s contributions
Segmented demand modeling
Modeled demand for ten specific polymer grades by correlating GDP growth multipliers with end-use applications in automotive and electronics.
Cost and margin forecasting
Leveraged proprietary databases to forecast integrated margins and price premiums for HSPP and rTPO over commodity homopolymers.
Supply side risk analysis
Evaluated global capacity additions and technology licensing trends, specifically the suitability of Spheripol and Unipol for specialty grades.
Primary stakeholder research
Conducted targeted interviews with industry professionals to validate regional trade patterns and logistics constraints across the Americas.
Key outcomes
- Guided capital allocation for regional capacity additions and prioritized target grade slates based on automotive and packaging demand.
More insights
Article
Record RFS mandates strain biofuel supplies
The EPA’s recently finalized Renewable Volume Obligations (RVOs) for 2026–2027 raise Renewable Fuel Standard (RFS) mandates to record levels, marking a step-change in required blending volumes. This shift increases demand across the system and leaves less buffer between required volumes and available supply, tightening overall market conditions. Key dynamics shaping supply requirements: These dynamics suggest […]
Premium content
Oil & gas midstream: 2026 mid-year trends and supply chain impacts
The midstream sector in the first half of 2026 is moving at a breakneck pace, driven by a strategic pivot toward “wellhead-to-water” natural gas liquid (NGL) integration, severe high-horsepower compression supply-chain constraints, and a massive power-generation super-cycle spurred by AI data center expansion. Rather than relying on speculative mega-projects, major pipeline operators are maximizing fee-based […]
SAF Tracker
2026 June SAF Tracker highlights – #87
Here are the latest highlights from ADI’s SAF Tracker: The full newsletter along with archives and databases are available to SAF Tracker subscribers.