This week, Polypropylene prices down adjusted in the South Asian region.
An industry source in Asia on condition of anonymity informed a Polymerupdate team member, “PP prices trended lower in key South Asian markets like India this week owing to a softened purchase pulse. Buyers have been making need-based purchases while preferring to secure their requirements from domestic sources rather than committing to import purchases.”
The source added, “Meanwhile, domestic market fundamentals in Pakistan are expected to improve following the approval of a bailout package by the International Monetary Fund (IMF) which would help the beleaguered country avert a sovereign default and put its economy back on the path to stabilization.”
In India, PP raffia and PP injection prices were assessed at the USD 970-990/mt CFR levels, both week on week down USD (NC/-10/mt). PP film and BOPP prices were assessed at the USD 990-1010/mt CFR levels, both decreased by USD (NC/-10/mt) from the previous week. PP block copolymer prices were assessed at the USD 1010-1030/mt CFR levels, a fall of USD (NC/-10/mt) from last week.
A domestic industry source informed a Polymerupdate team member, “Reliance Industries Limited (RIL) has rolled over PP prices with effect from October 1, 2024.”
Consumption activity for September had dipped with buying ideas heard below the USD 970/mt levels. Most of the market participants are anticipating a dampening in demand sentiments in October with the onset of the festive season.
In Pakistan, PP raffia and PP injection grade prices were assessed at the USD 990-1020/mt levels, both lower by USD (-10/mt) from last week. PP film and BOPP prices were assessed at the USD 1010-1050/mt CFR levels, both week on week decreased by USD (-10/mt). PP block copolymer prices were assessed at the USD 1030-1090/mt CFR levels, down by USD (-10/mt) from the previous week.
In Pakistan, Middle Eastern producers have offered its PP raffia and injection grades in the range of USD 990-1020/mt levels, for shipment in October 2024.
In Pakistan, lower import offers from overseas suppliers supported the price fall.
In Sri Lanka, PP raffia and PP injection grade prices were assessed at the USD 1010-1050/mt CFR levels, both lowered by USD (-10/mt) from the previous week. PP film and BOPP prices were assessed at the USD 1050-1080/mt CFR levels, both week on week decreased by USD (-10/mt). PP block copolymer prices were assessed at the USD 1070-1090/mt CFR levels, a fall of USD (-10/mt) from last week.
In Sri Lanka, Middle Eastern producers have offered their PP raffia and injection grades in the range of USD 1010-1050/mt levels, for shipment in October 2024.
In Sri Lanka, import offers from overseas suppliers were quoting at lower levels. Most of the buyers remained on the sidelines to track where the markets were headed in the near term.
In Bangladesh, PP raffia and PP injection prices were assessed at the USD 990-1030/mt CFR levels, both lower by (-10/-20/mt) from the previous week. PP film and BOPP prices were assessed at the USD 1010-1050/mt CFR levels, a week on week fall of USD (-10/-20/mt). PP block copolymer prices were assessed at the USD 1050-1110/mt CFR levels, a drop of USD (-10/-20/mt) from last week.
In Bangladesh, Middle Eastern producers have offered their PP raffia and injection grades in the range of USD 990-1030/mt levels, for shipment in October 2024.
In Bangladesh, buying was reported to be sluggish with economic uncertainty weighing on offers in the region.
In Far East Asia, PP raffia and PP injection prices were assessed at the USD 870-900/mt CFR levels, both higher by USD (+10/NC/mt) from the previous week. Meanwhile, PP film and BOPP prices were assessed stable at the USD 870-910/mt CFR levels. PP block copolymer prices were also assessed steady at the USD 890-920/mt CFR levels.
In China, a week on week sharp rise in PP futures on the Dalian commodity exchange and steady derivative demand sentiments lent support to prices. A healthy macroeconomic outlook stemming from stimulus measures announced by the Chinese government also pushed prices higher.
A market-friendly monetary easing policy has bolstered post-holiday expectations. The sales pressure of merchants towards the end of the month has abated with market sentiment appearing bullish. The consistency in macroeconomic loosening is expected to stimulate market sentiment. While the variance between supply and demand dynamics has weakened, hopes of post-holiday gains have bolstered market optimism.
In Southeast Asia, PP raffia and PP injection grade prices were assessed at the USD 920-970/mt CFR levels, both unchanged week on week. PP film and BOPP prices were assessed at the USD 930-980/mt CFR levels, both rolled over from the previous week. PP block copolymer prices were assessed flat at the USD 960-1000/mt CFR levels.
In Southeast Asia, PP prices held steady with spot liquidity remaining limited. Regional producers, who continued to struggle with compressed PP production margins brought on by elevated container freight rates and high feedstock rates, remained focused on selling cargoes in the domestic markets in hopes of getting better netbacks.
Feedstock propylene prices were assessed at the USD 845-855/mt CFR China levels, while FOB Korea propylene prices were assessed at the USD 815-825/mt levels, both unchanged from the previous week.
In plant news, Jinneng Science and Technology has shut down its No.2 Polypropylene (PP) unit for maintenance in end September 2024. Further details on the duration of the shutdown could not be ascertained. Located in Qingdao, China, the No.2 unit has a production capacity of 450,000 mt/year.
In other plant news, Sinopec Hainan Petrochemical has restarted its No.2 polypropylene (PP) unit on September 30, 2024. The unit was shut for maintenance around September 20, 2024. Located in Yangpu, Hainan in China, the No.2 unit has production capacity of 200,000 mt/year.
