In the world of polymers and plastic granules, the main raw material that is often discussed is propylene (also known as propane). It may sound like a chemistry term reserved for laboratories, but for buyers and sellers of polymers such as PP, HDPE or LLDPE, understanding propylene can lead to better purchasing decisions and better cost visibility.

At Credco Sourcing Pvt Ltd, we supply and track plastic granules in India, and our knowledge of raw materials like pp is an advantage for our customers. In this article we explain:
- what propylene is,
- How it binds to polymer materials (especially PP),
- The most important market aspects of you as a buyer or trader,
- And answer common questions about propylene and polymer sources.
What is propylene?
Propylene (chemical formula C₃H₆) is an unsaturated hydrocarbon (olefin) widely used as a building block in the polymer industry. It’s produced in large petrochemical plants by processes such as steam or catalytic cracking of gasoline, ethane or propane.
Here’s what you need to know:
- Raw material for the production of polypropylene (PP), one of the most widely distributed types of polymers in India.
- Under normal conditions, it appears as a gas, but it’s stored and transported in compressed or refrigerated form.
- Supply and costs influence the pricing of polypropylene grades (e.g., PP M12, PP Raffia) and indirectly other polymers as well.
Also read: Polypropylene (PP): A Sustainable and Efficient Solution for Today’s Industries
How Propylene Connects to Plastic Granules

Let’s trace the chain from feedstock to finished granules:
| Step | From | To | Why it matters |
| Feedstock | Propylene | Polypropylene (PP) | Most PP resin grades are made from propylene. The price of propylene influences PP resin cost. |
| Resin production | PP Resin | Granules (PP M12, etc.) | Resin is processed into granules with modifiers; quality, cost, and supply chain are affected. |
| Trading & sourcing | Granules | Buyers, processors | Buyers of PP, HDPE, or LLDPE need to track upstream materials to predict price and availability. |
For example, if propylene feedstock costs rise sharply due to crude oil or naphtha supply issues, then the cost of PP granules will often increase—this matters to your sourcing strategy and budget planning.
What buyers and sellers should care about
As someone who ships or trades polymers, the practical implications of the propylene dynamics are:
The effect of supply,and costs
- A major factor in the cost of PP resin is the price of pp.
- Regional restrictions on feedstock supply (e.g., closure of crushing units) may reduce the availability of pp, resulting in higher resin prices.
- If pp is imported, there may be additional shipping costs/duties that will affect the landing price.
Quality aspects
The purity of the pp used in polymer-grade pp is important: more sulfur or impurities means additional processing steps—affecting costs and lead times.
Pellets made from lower-quality raw materials may have larger errors or deviations.
Price forecasting and purchasing strategy
Monitoring the trend of raw materials (pp, gasoline, and ethane) provides an early warning of polymer price movements.
Buyers can use this insight to secure an offer, use watchlists, or plan smart inventory.
At Credco Sourcing, we help track the live prices of polymer grades that are often influenced by the price of pp.
Quality Considerations
- The purity of pp used in polymer-grade PP matters: more sulfur or impurities mean additional processing steps—affecting cost and lead time.
- Granules made from low-quality feedstock may have higher defects or variation.
Price Forecasting & Procurement Strategy
- Monitoring feedstock trends (pp, naphtha, ethane) gives early warning of polymer price movement.
- Buyers can use this insight to lock in supply, use watchlists, or plan inventory wisely.
- At Credco Sourcing, we help you track live polymer grade prices, often influenced upstream by pp cost.
Also read: Ethylene Vinyl Acetate (EVA) and its applications: intensive understanding
General applications of propylene-derived polymers
Since pp is mainly used in the production of pp, the end products demonstrate the importance of this raw material:
Packaging: Rigid containers, lids, and non-woven bags—a bunch of PP is used.
Automotive industry: Bumpers, upholstery panels, and fibre-based composites often contain PP.
Consumer goods: household goods, appliances, and furniture.
Textiles and fibres: Certain types of carpet fibres use pp, which is derived from pp.
When shipping pellets such as PP M12 or tracking the availability of PP Homo/Copo, understanding your pp supply is a contextual advantage.
Market trends and next steps

Here are some trends to watch out for:
Feedstock shift: A bunch of regions are switching from gasoline to ethane/ethane-based cracking; that is changing the dynamics of propylene production.
Regional supply-demand imbalance: Asia and the Middle East witness new shredding capacity → propylene/PP inventories increase. Like, Indian buyers should follow import parity.
Sustainability pressure: As recycled polymers gain traction, feedstock dynamics may change, but feedstock PP (a feedstock derived from pp) remains key.
Price transparency tools: Platforms such as Credco Sourcing increasingly provide live price trends for PP grades—feeding from upstream raw material analytics improves decision-making.
Also read: Indian Polymer Market Sees Steady G rowth Across LLDPE, LDPE, and HDPE Segments
FAQ
Q1. What is used to produce propylene plastic granules?
Propylene is mainly used to produce polypropylene (PP) resin, which is then processed into pellets (such as PP M12) and used for injection moulding, extrusion, and other processes.
Q2. Why should a polymer buyer care about the price of propylene?
Because the cost of propylene affects the price of PP resin and ultimately PP pellets. Significant changes in the cost of raw materials usually affect the polymer grade price.
Q3. How can I track propylene and PP price trends?
Use industry newsletters, petrochemical reports (for olefin feedstock pricing), and polymer platforms (such as Credco Sourcing’s live pricing tool) to track trends.
Q4. Does the propylene supply affect other polymers such as HDPE or LLDPE?
Indirectly, yes. While HDPE/LLDPE uses ethylene-based feedstocks, general restrictions on petrochemical feedstocks (naphtha, ethane, etc.) and logistical issues can affect the cost of multiple resins at once.
Q5. What quality problems arise from the raw materials of polymer granules?
Impurities in the base material (such as sulphur or other chemicals) can result in an unstable resin, a change in the melt flow index (MFI), or a high failure rate. Always check the COA (Certificate of Analysis) when purchasing.
Final thoughts
Understanding pp is not just a chemistry lesson but a vital piece of the puzzle of polymer resources. At Credco Sourcing, whether you’re buying PP M12, HDPE, LLDPE, or PVC, PP, knowing raw material trends (such as pp) enables you to plan, negotiate, and execute your purchases.
If you’re looking for transparent pricing, verified suppliers, and smart procurement tools, our platform is built for the modern polymer buyer. Use the information here to stay ahead of the curve—as materials move fast.
Also read: Intelligent logistics management in the polymer industry | Credco Resources



