Polypropylene (PP) prices across Asia rolled over this week, reflecting an uneasy balance between ample supply and muted demand, as regional markets struggled to find direction amid mounting economic pressures and sluggish downstream activity.
A source in Asia observed that the global energy backdrop remains a defining factor, with the Russia–Ukraine conflict and U.S. sanctions on major oil producers continuing to drive crude oil volatility. While feedstock costs remain elevated, oversupply and weak consumption across Asia have prevented any meaningful upward momentum in PP pricing.
In the Far East, PP raffia and injection grades held steady at USD 850–890/mt CFR, with film grades flat at USD 890–940/mt. BOPP prices were unchanged at USD 870–910/mt, while block copolymer remained stable at USD 910–930/mt. In China, the market has come under pressure from increased output following the startup of new CNOOC Daxie units and fewer maintenance turnarounds. Despite expectations for stronger seasonal demand in September, converters have been cautious, keeping downstream orders restricted. With plant operating rates above 80%, oversupply has left both futures and spot prices under pressure, even as overseas producers and Middle Eastern suppliers offered raffia and injection grades within the USD 850–890/mt range for September shipment.
Southeast Asia mirrored this stability, with raffia and injection grades assessed at USD 860–900/mt CFR and film grades steady at USD 910–950/mt. BOPP and block copolymer prices also remained unchanged at USD 870–920/mt and USD 920–950/mt respectively. Traders in the region reported subdued activity, citing weak economic conditions, rising inflation, and fading consumer demand. Supply is expected to increase following the restart of a Vietnamese producer, further weighing on sentiment. While September is seen as oversupplied, some improvement may come in October if a Malaysian producer alters output after a financial review. Offers from Middle Eastern suppliers remained consistent, with raffia and injection grades quoted at USD 860–900/mt CFR.
India diverged from broader regional stability, with prices slipping to new lows. Raffia and injection grades were assessed at USD 880–920/mt CFR, down USD 10/mt from last week. Film prices fell to USD 910–940/mt, while block copolymer declined to USD 920–960/mt. BOPP was also weaker at USD 890–940/mt, marking four-year lows for PP in the Indian market. Reliance Industries Limited cut domestic PP prices by Re.1/kg effective September 1, 2025, adding to bearish sentiment. The market has been hit by oversupply, sluggish demand, and a weak rupee, while new U.S. tariffs of 50% threaten raffia bag exports. The usual festive-season boost in September has yet to materialize, leaving buyers hesitant to commit.
Pakistan’s market remained largely steady, with raffia and injection grades at USD 900–920/mt CFR, and film and BOPP values at USD 930–940/mt. Block copolymer prices were stable at USD 940–980/mt. However, heavy monsoon rains have disrupted trade flows and logistics, limiting activity across industrial hubs. In Sri Lanka, raffia and injection were assessed at USD 930–960/mt CFR, with film and BOPP at USD 980–1000/mt and block copolymer at USD 1000–1020/mt, all unchanged on the week. Bangladesh also reported steady pricing, with raffia and injection at USD 910–940/mt CFR and film at USD 930–950/mt. Block copolymer held at USD 970–1010/mt. Both Sri Lanka and Bangladesh continued to experience subdued trading as end-users and distributors maintained a cautious stance amid high stock levels and uncertain demand.
Feedstock propylene values provided little relief. CFR China prices edged up by USD 5/mt to USD 785–795/mt, while FOB Korea prices also rose by USD 5/mt to USD 755–765/mt. Yet these gains have not translated into firmer PP sentiment, as oversupply continues to dominate fundamentals.
On the supply side, several maintenance turnarounds were reported in China. Ningxia Baofeng Energy shut three PP units at Yinchuan, with a combined capacity exceeding 1.1 million mt/year, though the duration remains unconfirmed. Hebei Haiwei Group also idled its 300,000 mt/year PP unit and its propane dehydrogenation (PDH) facility, which produces 500,000 mt/year of propylene feedstock. These outages have yet to significantly tighten availability, given the broader oversupply situation.
Overall, the Asian PP market remains stagnant, with prices largely rolled over but underpinned by weak sentiment. Unless downstream demand picks up meaningfully or production is curtailed, the market appears set to move within a narrow range in the weeks ahead, with India remaining particularly vulnerable to further declines.
