Polypropylene (PP) prices slipped across much of Asia this week, pressured by sluggish demand, rising stock levels, and weaker upstream energy markets. An industry source in Asia, speaking to a team member on condition of anonymity, said the OPEC+ alliance has signaled a planned production hike in November, while the restart of crude exports from Iraq’s Kurdish region has added supply to the market, driving international oil prices lower. This decline in crude, coupled with regional demand weakness, has contributed to persistent downward pressure on PP markets.
In Far East Asia, PP raffia and injection grades were assessed at USD 820-860/mt CFR, lower by USD (-5/mt) week on week. PP film values were pegged at USD 860-900/mt CFR, while BOPP was at USD 840-870/mt CFR, both edging down USD (NC/-10/mt). PP block copolymer was assessed at USD 870-890/mt CFR, slipping USD (-10/mt) from last week. In China, prices continued to weaken ahead of the National Day holiday, with many grades touching multi-year lows. Most converters completed pre-holiday restocking, resulting in thin demand until mid-October. With additional suppliers entering the market and factories cutting prices to clear stock, trading remained subdued. Rising inventories, weak seasonal demand, and expectations of only a modest post-holiday rebound are set to keep sentiment under pressure.
Southeast Asia mirrored the downturn, with PP raffia and injection assessed at USD 830-860/mt CFR, down USD (NC/-10/mt). PP film was assessed at USD 870-910/mt CFR, down USD (-10/mt), while BOPP was valued at USD 840-880/mt CFR. PP block copolymer prices slipped to USD 870-900/mt CFR. The region continues to face heavy oversupply as new capacities start up, Chinese exports rise, and demand weakens. Domestic materials, offered at lower rates, are more attractive to buyers who are cautious about further price drops. With imports increasingly expensive amid weaker currencies, producers may be forced to curb output in the coming quarter as low PP prices clash with high feedstock naphtha costs.
In India, PP raffia and injection were steady at USD 850-880/mt CFR. Film and BOPP remained at USD 870-910/mt CFR and USD 850-910/mt CFR, respectively, while block copolymer held at USD 880-920/mt CFR. Reliance Industries Limited (RIL) reduced PP grade prices by Rs.1.50/kg basic and PP deemed export prices by Re.1/kg, effective October 1, 2025, while withdrawing price protection. Despite stable assessments, buyers in India have been submitting lower bids, with many participants adopting a wait-and-see stance until after China’s holiday.
In Pakistan, PP raffia and injection grades fell to USD 860-890/mt CFR, down USD (NC/-10/mt), while film and BOPP were at USD 890-920/mt CFR and block copolymer at USD 900-960/mt CFR, all down by USD (NC/-10/mt). Severe flooding and rainfall have disrupted downstream activity and curbed packaging demand, leaving trading subdued. Liquidity constraints and abundant regional supply continue to weigh on sentiment despite some support expected from the harvest season.
Sri Lanka also saw declines, with raffia and injection grades assessed at USD 900-940/mt CFR, film and BOPP at USD 950-980/mt CFR, and block copolymer at USD 960-1000/mt CFR, all lower by USD (-10/mt). In Bangladesh, PP raffia and injection were pegged at USD 870-900/mt CFR, while film and BOPP were at USD 890-910/mt CFR and block copolymer at USD 930-970/mt CFR, with all grades falling USD (-10/-20/mt). Across Sri Lanka and Bangladesh, cautious buying dominated amid weak end-user demand, fragile economic conditions, and subdued import offers, keeping sentiment muted.
Feedstock propylene prices also softened, with CFR China assessed at USD 780-790/mt and FOB Korea at USD 745-755/mt, both down USD (-10/mt) from the prior week.
Plant developments further shaped the market outlook. Zhongjing Petrochemical restarted its No.3 PP unit in Fuqing, China, around September 27 after a short maintenance shutdown, adding back 600,000 mt/year of capacity. In contrast, Shandong Chambroad Sinopoly shut its 200,000 mt/year No.2 PP plant in Binzhou for maintenance from September 22, with the duration unclear. Meanwhile, Shandong Lihuayi Group plans to take its 600,000 mt/year propane dehydrogenation (PDH) unit offline for scheduled maintenance around October 9 in Dongying, though no details on the length of the shutdown have been confirmed.
With oversupply mounting and demand sluggish, the Asian polypropylene market faces a prolonged period of weakness, as producers struggle to balance low selling prices with elevated feedstock costs.
