Polylactic Acid (PLA) Price Trend and Forecast

Regional Price Overview

Get comprehensive insights into the Polylactic Acid (PLA) market, with a focused analysis of the Polylactic Acid (PLA) price trend across Asia, Europe, North America, Latin America, and the Middle East & Africa.

Polylactic Acid (PLA) Price Index

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Polylactic Acid (PLA) Price Trend for the October - December of 2023

Asia

The Asian polylactic acid market trends were observed to be fluctuating during the final quarter of the year 2023. The overflowing inventory stocks amidst regular demands drove these market trends downhill in the Chinese market. The Chinese polylactic acid market saw the monthly average prices going from about 2526 USD/MT(CIF) in October’23 to around 2416 USD/MT in December’23, registering an approximate 4% decline in the polylactic acid market rates. However, the Indian polylactic acid industry saw increased usage of the polymer by the downstream bioplastics and packaging sectors, this resulted in the mild upward fluctuations of the PLA price trends. The prices here went from about 3220 USD/MT in October’23 to around 3312 USD/MT in December’23.

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Europe

The European market sentiments for polylactic acid were largely mixed throughout Q4’23. The prices grew in the first half of the quarter because of the increased consumption. However, the impending holiday season in the second half of the quarter brought the PLA prices down in the European market.

North America

The North American polylactic acid (PLA) market was observed to be influenced by the Chinese PLA market. Since the freight disturbance during this time hurdled international trade, the domestic market in the USA could not sustain the PLA prices to the initial levels. So, the monthly average prices saw a swift and borderline decline in the first half of the quarter with the prices averaging around 2562 USD/MT in November’23. However, the prices rebounded within the second half of the quarter and averaged around 2615 USD/MT in December’23.

Analyst Insight

According to Procurement Resource, similar fluctuations are expected in the Polylactic Acid market going forward as well. Given the current market dynamics, the future projections largely look positive for the coming months.

Polylactic Acid (PLA) Price Trend for the July-September of 2023

Asia

The Asian polylactic acid (PLA) prices experienced a consistent fall in the Chinese market in the third quarter of the year 2023. In the Chinese domestic market, the monthly average prices fell by about 5% as the prices shifted from around 2745 USD/MT (CIF, China) in July’23 to about 2605 USD/MT in September’23. The dull demands from the pharma industries were the primary reasons behind the observed depreciation in polylactic acid prices.

On the other hand, the Indian polylactic acid market witnessed an opposite market performance as the average prices here rose throughout the given span. The monthly average spot prices rose by around 3% as the prices increased from about 3040 USD/MT in July’23 to around 3135 USD/MT in September’23. Overall, mixed market sentiments were observed for polylactic acid during the said period of Q3’23.

Europe

The European polylactic acid market, too, saw falling price trend during the given period. The downward trend in the polylactic acid price graph was primarily attributed to the lackluster demands from the pharma and 3-D printing industries that pushed the prices downhill. Overall, bearish market sentiments were observed.

North America

The North American polylactic acid markets, too, followed the other major global markets as the price trend kept on the downhill trek for the entire period of Q3’23. The monthly average prices fell from around 2860 USD/MT (FOB) in July’23 to about 2640 USD/MT in September’23. With this, the quarterly price index registered a downfall of about 7% within the said period.

Analyst Insight

According to Procurement Resource, the Polylactic Acid price trend are likely to continue to falter going forward as well. Since the demand outlook is not looking like it will improve anytime soon, the price trend are also likely to follow the same suit.

Polylactic Acid Price Trend for the First Half of 2023

Asia

The Asian Polylactic Acid (PLA) market witnessed mixed price trend in the first half of 2023. PLA prices swung mostly on the higher side. Because of lesser carbon emissions and biodegradability, bioplastics are gaining momentum. Stable and high demands were registered from the food and pharma packaging sectors. Moreover, feedstock maize and sugarcane prices are also inclined to add to the upstream costs.

In China, PLA averaged about 2698 USD/MT (CIF, China) in January and increased by approximately 3% to around 2785 USD/MT (CIF, China) in June 2023. The highest average price was recorded in May when the prices reached about 2833 USD/MT (CIF, China).

Europe

Polylactic acid in the European market had an oscillating run in H1 2023. Because of rising global demands, inventories were running low, and rising feedstock prices increased the importing costs for European markets. Price trend observed visible hikes at the beginning of both quarters; however, they remained stable throughout.

North America

American market behaved no differently than other international markets for Polylactic Acid in H1 2023. As demands remained consistent, upstream costs pressure from high feedstock and energy prices kept the market prices anchored. Prices started at around 2485 USD/MT (FOB, USA) in January and to around 2903 USD/MT (FOB, USA) in June’23.

Analyst Insight

According to Procurement Resource, the Polylactic Acid price trend are expected to continue on the same inclined journey, as the demands are consistently rising, and inventories are readily getting vacated. Since production costs are also high, the projections look positive for the Polylactic Acid markets.

Polylactic Acid Price Trend for the Second Half of 2022

Asia Pacific

The polylactic acid market was stable in the third quarter of 2022. The region saw a rise in feedstock prices and an increase in the demand from the biodegradable plastics industry which drove the prices of polylactic acid in the region. However, the above trend was not followed in the fourth quarter. The fourth quarter followed a downward trajectory as the economic conditions of the market were weak. The increase in restrictions in the economic epicentres of China fluctuated operational costs and declining demand led to the decline in the prices of polylactic acid.

Europe

High natural gas prices, inflation rates, and steady demand from the end-user sectors drove the prices of polylactic acid to the stable range in the European market for the third quarter. This, however, did not continue till the fourth quarter. In Q4, disruptions in supply chains, the threat of economic recession, and port congestion activities negatively affected the price trend for polylactic acid.

North America

The doom of recession also shadowed the North American market. The third quarter saw high demand from the biodegradable plastics industries, but high inflation and delayed supply led to the fluctuation in the price trend of polylactic acid. The price drop was very significant in the fourth quarter as compared to the third. Low employment and high inflation rates led to lower production and a decline in the input and output costs that severely affected the market.

Analyst Insight

The prices of Polylactic acid are estimated to increase in the upcoming quarters. With the limited supply, scarcity of products, and increasing demand from the end sector, the price trend of polylactic acid is expected to increase.

Procurement Resource provides latest prices of Polylactic Acid. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.