PP has long road to recovery

North American PP operating rates are expected to begin an uptick later this year, climbing from the low 80s in percentage to the mid-80s and staying there through 2002, according to Chemical Market Associates Inc. analyst Graham Harris in Houston. In North America alone, capacity has increased 30 percent since 1999, including almost 2 billion pounds this year from expansions by Dow Chemical Co., Formosa Plastics Corp. USA and others. North American PP prices have fallen steadily since mid-2000, and producers have seen little success with 3 cent-per-pound increase attempts that were slated for Feb. 1.