Polypropylene (PP) prices declined across several parts of Asia this week, with regional markets weighed down by oversupply concerns, muted demand, and cautious trading activity. An industry source in Asia, speaking on condition of anonymity, told a Polymerduniya team member that geopolitical tensions, particularly the ongoing Russia–Ukraine conflict, continue to inject short-term volatility into the global energy trade. Ukrainian strikes on Russian energy infrastructure have heightened supply concerns, yet markets appear to be gradually adjusting to the situation. Despite forecasts of oversupply, futures markets are signaling near-term tightness, although elevated prices in the broader energy complex could sustain inflationary pressures before an eventual easing in the medium to long term.
In Far East Asia, PP raffia and injection grades were assessed at USD 850–890/mt CFR, down by USD 10/mt from last week. PP film prices slipped to USD 890–940/mt CFR, while BOPP grades were assessed at USD 870–910/mt CFR and block copolymers at USD 910–930/mt CFR, all recording slight declines. The downturn reflected weak market sentiment in China, where abundant supply, expectations of new plant startups, and a lack of seasonal demand rebound have kept buyers on the sidelines. Traders in China cut bids to attract purchases, but overcapacity remains a challenge for both Chinese and South Korean producers. Low-priced shipments from Southeast Asia, coupled with weak domestic demand, contributed to a bearish tone, while export interest remained limited due to intense competition and weak overseas demand.
In Southeast Asia, PP raffia and injection grades held steady at USD 860–900/mt CFR, while film, BOPP, and block copolymers also remained flat week on week. Market activity was sluggish, with demand staying soft despite modest improvements in downstream orders. Plant restarts in the region have boosted supply, prompting suppliers to lower offers to stimulate sales. Competitive pricing among regional producers, particularly in Indonesia and Thailand, kept prices under pressure, while many converters adopted a wait-and-see approach, holding back fresh purchases until September offers are released.
India saw declines across all grades, with raffia and injection assessed at USD 890–920/mt CFR, film at USD 920–940/mt, block copolymers at USD 930–960/mt, and BOPP at USD 900–940/mt, each down by USD 10/mt from last week. Domestic producer Reliance Industries Limited (RIL) reduced PP prices by Rs.1.50/kg effective August 21, 2025, offering price protection until the end of the month. Market sentiment remained weak as extended monsoon rains dampened demand from key downstream industries. Tariff-related uncertainties in US-India trade, a weakening rupee, and seasonal slowdowns further restrained buying. Although a local producer’s plant remained offline for maintenance, market availability was sufficient, with most buyers and sellers postponing larger transactions until September, when the seasonal lull ends and demand could strengthen.
In Pakistan, PP raffia and injection were assessed at USD 900–920/mt CFR, down USD 10/mt from last week. Film and BOPP stood at USD 930–940/mt CFR, while block copolymers were at USD 940–980/mt CFR, all lower by USD 10/mt. Demand was curtailed by regulatory changes related to electronic invoicing and auditing requirements, which prompted buyers to delay purchases until greater clarity emerges. Despite this, both buyers and sellers expect demand to rebound in September as monsoon conditions subside and the market adapts to the new framework.
Sri Lanka and Bangladesh markets, by contrast, held steady. In Sri Lanka, raffia and injection remained at USD 930–960/mt CFR, film and BOPP at USD 980–1000/mt CFR, and block copolymers at USD 1000–1020/mt CFR, unchanged from last week. In Bangladesh, raffia and injection were stable at USD 910–940/mt CFR, film and BOPP at USD 930–950/mt CFR, and block copolymers at USD 970–1010/mt CFR. Market activity in both regions was subdued, with most buyers awaiting new September offers as Middle Eastern suppliers completed their August allocations.
Upstream, feedstock propylene prices gained slightly. CFR China values were assessed at USD 780–790/mt, while FOB Korea stood at USD 750–760/mt, both up by USD 10/mt from the previous week. Plant activity also shaped supply sentiment, with Vietnam’s Long Son Petrochemical restarting its 400,000 mt/year PP unit on August 19 following an extended shutdown since October 2024. In South Korea, Yeochun Naphtha Cracking Centre (YNCC) shuttered its No. 3 cracker on August 8 due to poor market conditions. The facility, with 470,000 mt/year ethylene and 270,000 mt/year propylene capacity, is expected to remain offline until profitability improves.
Overall, polypropylene markets in Asia are under pressure from weak seasonal demand, oversupply in key regions, and cautious buying behavior, with most participants pinning hopes on improved activity after September.
