This week, Polypropylene prices down adjusted in Southeast Asia while they remained stable in other parts of Asia.
An industry source in Asia while in conversation with a Polymerupdate team member said, "The escalating Middle Eastern conflict situation further exacerbated by ongoing tensions in Syria has led to a day-on-day rise in crude oil prices. Meanwhile, a depreciation in Asian currencies against the US dollar has continued to dampen market sentiments."
In Southeast Asia, PP raffia and PP injection grade prices were assessed at the USD 930-970/mt CFR levels, both down by USD (-10/mt) from the previous week. PP film and BOPP prices were assessed at the USD 940-980/mt CFR levels, both week on week declined by USD (-10/mt). PP block copolymer prices were assessed at the USD 980-1010/mt CFR levels, a drop of USD (-10/mt) from last week.
In Southeast Asia, PP spot offers have been proportionate to previous week levels. However, sellers were impeded in their efforts to conclude transactions as buyers held lower purchase ideas. Converters adopted a cautious stance and continued to make need-based procurements owing to price uncertainties foreseen over the next two months. Trade momentum is likely to decelerate in December with some players anticipated to stay away for year-end holidays. Meanwhile, the regional PP outlook remains clouded in uncertainty, while an oversupply situation in China and start-up of new production facilities in the country have the potential to weigh on Asia-Pacific PP prices over the next two months, leading southeast Asian converters to assume a cautious buying stance. If there is a normalization in freight rates in Q1 2025, Chinese PP producers could raise the quantum of export cargoes to countries in southeast Asia.
Meanwhile in Far East Asia, PP raffia and PP injection prices were assessed stable at the USD 880-920/mt CFR levels. PP film and BOPP prices were assessed at the USD 890-930/mt CFR levels, both rolled over week on week. PP block copolymer prices were assessed stable at the USD 910-940/mt CFR levels.
In China, domestic PP prices trended moderately downward as the seasonal lull has led to piling of inventories with major producers, even as import prices gained with pressure associated with clearing of feedstock softening prior to the year-end. Weak commodities’ performance exerted a bearish pressure on PP futures. There was an uptick in the trading momentum with downstream converters making efforts to restock reduced inventories.
In India, PP raffia and PP injection prices were assessed stable at the USD 940-960/mt CFR levels. PP film and BOPP prices were assessed at the USD 960-980/mt CFR levels, both week on week unchanged. PP block copolymer prices were assessed steady at the USD 980-1000/mt CFR levels.
PP prices in India remained unchanged amid minimal trade activity. Demand remained muted with supplies seen to be sufficient in local markets. Although domestic producers announced incentive schemes to spur buying, buyers were generally unwilling to respond. There was no significant pickup in restocking activity anticipated ahead of the impending implementation of BIS certification for PP imports from December 24 as buyers had already made purchases in bulk quantities in the preceding weeks, leading to accumulation of ample stocks. Buying ideas for some grades had softened. There was some uptick in buying activity with a few buyers seeking to book cargoes for January delivery. Buyers opted to source material domestically, as discounts offered by producers led to prices remaining at lower levels or in the same range as import offers.
In Pakistan, PP raffia and PP injection grade prices were assessed steady at the USD 980-1010/mt levels. PP film and BOPP prices were assessed at the USD 1000-1040/mt CFR levels, both flat week on week. PP block copolymer prices were assessed stable at the USD 1010-1070/mt CFR levels.
In Pakistan, market sentiment remained subdued through the week. Mounting concerns over political instability prompted most buyers to exercise caution, further dampening demand. Fresh offers were scarce, primarily originating from GCC-based suppliers, resulting in minimal trading activity.
In Bangladesh, PP raffia and PP injection grade prices were assessed at the USD 980-1020/mt levels, both stable from the previous week. PP film and BOPP prices were assessed at the USD 1000-1040/mt CFR levels, both rolled over week on week. PP block copolymer prices were assessed flat at the USD 1040-1100/mt CFR levels.
In Sri Lanka, PP raffia and PP injection grade prices were assessed at the USD 1000-1050/mt CFR levels, both down USD (-10/NC/mt) from the previous week. PP film and BOPP prices were assessed stable at the USD 1050-1080/mt CFR levels. PP block copolymer prices were assessed at the USD 1070-1090/mt CFR levels, unchanged from last week.
Market participants concentrated on offloading material with an emphasis on holding leaner inventories prior to the start of the new year. Demand remained muted, with hardly any seasonal pickup seen ahead of the Christmas season. Furthermore, buying sentiments were also impacted ahead of the approaching deadline in December for Bureau of Indian Standards (BIS) certification implementation for PP imports.
Feedstock propylene prices on Tuesday were assessed at the USD 835-845/mt CFR China levels, while FOB Korea propylene prices were assessed at the USD 795-805/mt levels, both higher by USD (+10/mt) from the previous week.
In plant news, Jinneng Chemical has resumed operations at its No.2 Polypropylene (PP) unit in Qingdao, Shandong in China. The 450,000 mt/year unit was brought back on stream on December 3, 2024, after being shut on October 17, 2024, due to margin pressures.
In other plant news, Sinochem Quanzhou Petrochemical has restarted its No.1 Polypropylene (PP) unit on December 8, 2024. The unit was shut for brief maintenance work on December 2, 2024.
Located in Quanzhou, Fujian in China, the No.1 PP unit has a production capacity of 200,000 mt/year.
In another plant news, Long Son Petrochemical is in plans to bring its polypropylene (PP) unit on stream in end December 2024. The unit was shut in mid-October 2024 along with an upstream cracker with concerns mounting over shrinking production margins and dampened derivative demand conditions. Located in Long Son, Vietnam, the PP unit has a production capacity of 400,000 mt/year.
