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This week, Polypropylene prices displayed a mixed undertone in the Asian region.
An industry source in Asia on condition of anonymity informed a Polymerupdate team member, " Crude oil prices experienced a decline to their periodic lows on Tuesday, as the imposition of tariffs and retaliatory tariffs raised the spectre of multi-pronged trade conflicts while heightening concerns of a global economic downturn and diminished energy demand. Additionally, the unwinding of supply cuts by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) is anticipated to aggravate the existing supply glut in the in crude oil market, further intensifying the bearish outlook across the energy sector.”
In Far East Asia, PP raffia and PP injection prices were assessed at the USD 890-930/mt CFR levels, both higher by USD (+10/mt) from the previous week. PP film were assessed at the USD 910-950/mt CFR levels, a week on week rise of USD (+10/mt). PP BOPP prices were assessed at the USD 895-935/mt CFR levels while PP block copolymer prices were assessed at the USD 920-950/mt CFR levels, both gained by USD (+10/mt) from last week.
Firmer import offers from overseas suppliers coupled with stronger futures on the Dalian Commodity Exchange (DCE) supported the price rise.
A converter in China stated that future capacity expansions in China have the potential to impact PP market dynamics, while exacerbating the supply pressure. Some local traders lowered their offers to boost sales even as PP futures in China experienced gains. While import prices rose as exporters sought to preserve margins, demand improved after the Lunar New Year as converters increased run rates.
Although petrochemical plants in Daesan, South Korea, were forced to shut down due to a fire-induced power outage, the market was not significantly impacted. Chinese suppliers, on the other hand, actively pursued exports in order to improve their netbacks, even showing willingness to accept discounts. Stable supply, cautious downstream demand, and weak crude oil support proved to be supportive for the resistance to polypropylene prices. Inventory pressure is keeping raw material procurement in check as operating loads rise but orders continue to be insufficient. Market movement is likely to be rangebound in the short term in light of these factors.
In Southeast Asia, PP raffia and PP injection grade prices were assessed at the USD 950-990/mt CFR levels, both higher by USD (+10/mt) from the previous week. PP film prices were assessed at the USD 990-1030/mt CFR levels, a rise of USD (+20/mt) from last week. PP BOPP prices were assessed at the USD 970-1010/mt CFR levels, while PP block copolymer prices were assessed at the USD 1000-1030/mt CFR levels, both increased by USD (+10/mt) from the previous week.
PP prices in Southeast Asia have remained strong amid steady demand from downstream users. In Indonesia, there has been a heightened interest in purchasing PP copolymer as expectations rise regarding the potential implementation of anti-dumping duties (ADDs), which may influence international trade.
In the Philippines, there was an uptick in PP import activity following the shutdown of JG Summit’s production facilities, prompting regional producers to direct more exports to the country. This situation led to tighter export allocations for other Southeast Asian countries, with Chinese-origin PP helping to cover the supply shortfall. Chinese-origin PP raffia continued to have a competitive price advantage over Middle Eastern sources, particularly as shipping costs for Chinese goods to Southeast Asia decreased. Freight rates decreased to USD 15-30/ton for Vietnam and Thailand, and USD 40-50/ton for Indonesia. Conversely, PP raffia from the Middle East and India was somewhat pricier due to constrained export quotas during the maintenance period.
A trader based in Hong Kong has pointed out that the Chinese market is being affected by the United States' decision to implement import tariffs, which include a 20% tariff on goods from China and a 25% tariff on products from Canada and Mexico. Export converters are currently engaging in discussions with U.S. customers, and these new tariffs are expected to have an impact on order volumes. This scenario is also influencing market sentiment regarding polyethylene (PE) and polypropylene (PP) prices, which have experienced a slight decline compared to the previous week. It is crucial to continue monitoring this situation, particularly as China responds by imposing additional tariffs on major U.S. agricultural exports.
Meanwhile in India, PP raffia and PP injection prices were assessed at the USD 960-980/mt CFR levels, both lower by USD (-10/mt) from the previous week. PP film and BOPP prices were assessed at the USD 990-1010/mt CFR levels, both declined by USD (-10/mt) week on week. PP block copolymer prices were assessed at the USD 1000-1020/mt CFR levels, a fall of USD (-10/mt) from last week.
A domestic industry source informed a Polymerupdate team member, “Reliance Industries Limited has rolled over PP grade prices, with effect from March 1, 2025, except AM650N grade price which has been reduced by Rs.2/kg basic.”
Polypropylene prices down adjusted in India amid low demand and decreased interest in restocking with few spot offers for PP raffia and block copolymer. Market players concentrated on destocking ahead of the Indian fiscal year-end, sometimes incurring losses. Although the current market is still weak because of continuous destocking, buying activity is anticipated to increase in April with the start of a new fiscal year and fresh contracts.
Indian purchasers are hesitant to agree to elevated offers from international manufacturers for the March cycle. The supply situation is constrained due to restricted allocations from the Middle East, where maintenance activities are currently taking place at production facilities. Nevertheless, this reduced supply has not bolstered prices, as market demand remains weak. Market participants are apprehensive about a possible oversupply following the conclusion of seasonal maintenance in the Middle East, which could exert downward pressure on the market in the latter half of 2025.
In Pakistan, PP raffia and PP injection grade prices were assessed at the USD 980-1020/mt levels, both down USD (-10/mt) from the previous week. PP block copolymer prices were assessed at the USD 1020-1090/mt CFR levels, a fall of USD (-10/mt) from last week. Meanwhile, PP film and BOPP prices were assessed at the USD 1020-1070/mt CFR levels, both week on week unchanged.
The polypropylene (PP) market in Pakistan experienced a downturn, primarily attributed to the influx of lower-priced offers from China, which fostered a negative sentiment among market participants. There were anticipations of additional price reductions. The decrease in freight costs from China to Pakistan further enhanced the competitiveness of Chinese-origin offers compared to those from the Middle East. Furthermore, demand was adversely affected by the Ramadan holiday, a time typically characterized by reduced market activity.
In Sri Lanka, PP raffia and PP injection grade prices were assessed at the USD 1000-1050/mt CFR levels, both rolled over from the previous week. PP film and BOPP prices were assessed at the USD 1050-1080/mt CFR levels, both steady week on week. PP block copolymer prices were assessed at the USD 1070-1090/mt CFR levels, constant from the previous week.
In Bangladesh, PP raffia and PP injection prices were assessed at the USD 990-1020/mt CFR levels, both unchanged from the previous week. PP film and BOPP prices were assessed at the USD 1010-1040/mt CFR levels, both stable week on week. PP block copolymer prices were assessed flat at the USD 1050-1100/mt CFR levels.
In Sri Lanka and Bangladesh, polypropylene (PP) prices remained stable due to few spot offers. However, buying momentum has slowed because of weak demand, as market participants await new offers.
Feedstock propylene prices on Tuesday were assessed at the USD 845-855/mt CFR China levels, while FOB Korea propylene prices were assessed at the USD 820-830/mt levels, both unchanged from previous week.
In plant news, PetroChina Guangdong Petrochemical has restarted its No.1 Polypropylene (PP) unit in early March 2025. The unit was shut for maintenance on February 17, 2025. Located in Guangdong, China, the No.1 unit has a production capacity of 500,000 mt/year.
In other plant news, PetroChina Sichuan Petrochemical has restarted its Polypropylene (PP) unit on March 1, 2025. The plant was shut for maintenance on February 23, 2025. Located in Sichuan province, China, the unit has a production capacity of 450,000 mt/year.
In another plant news, Tianjin Petrochemical has taken off stream its No.2 Polypropylene (PP) unit on February 24, 2025 for maintenance. The unit is slated to remain offline until April 26, 2025. Located in Tianjin, China, the No.2 unit has a production capacity 200,000 mt/year.
