Polypropylene (PP) prices across Asia softened this week, driven by sluggish demand, currency headwinds, and increasing competition from import offers. According to an anonymous industry source, geopolitical tensions, especially those arising from the Russia-Ukraine conflict, have stirred concerns over supply disruptions, while expectations of a U.S. Federal Reserve rate cut have helped prop up crude oil costs. Although these macro factors usually lend some support, they were not enough to prevent PP prices from sliding in most segments of the Asian market this week.
In Far East Asia, PP raffia and injection grades slipped to USD 830-870/mt CFR, downward by about USD 10/mt from the previous week. Film grades were assessed at USD 865-915/mt CFR, also down about USD 10/mt. BOPP and block copolymer grades followed suit, falling to USD 845-885/mt CFR and USD 885-905/mt CFR respectively. These declines reflect a mix of weak seasonal demand and an abundance of supply, both domestically and from overseas offers.
In China, import offers from Saudi Arabian and broader Middle Eastern producers for raffia and injection grades clustered around USD 830-870/mt for shipments in October 2025. Sellers in China appeared increasingly eager to move cargoes ahead of the National Day holiday, cutting offers to generate buying interest. Domestic demand remains soft, with converters tending to postpone purchases or stick to lower-priced forward deals as they assess whether price drops will continue.
Southeast Asia saw similar patterns: raffia and injection grades assessed at USD 840-880/mt CFR, film grades at USD 890-930/mt, BOPP at USD 850-900/mt, and block copolymer at USD 890-920/mt. Each grade marked a decline of roughly USD 10/mt compared to the prior week, with offers from Middle Eastern suppliers pressuring market sentiment.
In India, PP raffia and injection grades dropped to USD 860-890/mt CFR, film grades to USD 880-920/mt, and BOPP along with block copolymer grades saw sharper falls, dropping by USD 20/mt in some cases. The rupee’s slide past 88 to the USD further increased costs of imports, discouraging buyers from locking in volumes. The festive season has not yet spurred the usual demand uptick, as heavy rains and stalled downstream activity have held back restocking.
Other regional markets such as Pakistan, Sri Lanka, and Bangladesh also recorded flat to slightly lower PP price levels across raffia, injection, film, and block copolymer grades. Buyers largely deferred major purchases, waiting for clearer pricing direction once holiday disruptions and logistical constraints ease.
Feedstock trends added to the complex dynamic: propylene prices in China (CFR) moved up to about USD 800-810/mt, and FOB Korea saw a rise to USD 765-775/mt, both showing modest gains week-on-week. These increases offered limited support to PP producers facing weakening demand.
In plant news, Shandong Yulong in Yantai, China, has taken its No.1 PP unit offline around September 15 for maintenance (capacity ~400,000 mt/year), though no confirmation has been provided for how long the shutdown will last. Dongming Hengchang in Heze has already restarted its PP unit, offline since July, while Jinneng Science & Technology in Qingdao is expected to bring its No.1 PP unit back online in the second half of September. These developments may help reduce oversupply if closures align with low demand, but absent strong downstream pull, their impact may be marginal.
Overall, the outlook for PP in Asia remains soft in the near term. With the National Day holiday approaching in China and seasonal demand still lagging in India and Southeast Asia, market momentum is unlikely to return until buyers regain confidence and conditions stabilize. Unless there are sharp feedstock disruptions, currency improvements, or a sudden pick-up in downstream orders, PP pricing is expected to remain under pressure in the coming weeks.
