This week, Polypropylene prices firmed in South Asia while they quoted steady in Far East Asia and Southeast Asia.
An industry source in Asia on condition of anonymity informed a Polymerupdate team member, "The price rise was prompted by stronger import offers from overseas suppliers."
The source added, “Participants have been expressing concerns about the potential fallout of trade tensions arising out of the imposition of additional import tariff levies by the US government. Moreover, US officials alluded to the possibility of tightening sanctions against Iran, contributing to global oil price volatilities. Meanwhile, a strengthening US greenback against a basket of Asian currencies further weighed on international oil prices.”
Meanwhile in India, PP raffia and PP injection prices were assessed at the USD 970-990/mt CFR levels, both up USD (+10/mt) from the previous week. PP film and BOPP prices were assessed at the USD 1000-1020/mt CFR levels, both week on week increased by USD (+20/mt). PP block copolymer prices were assessed at the USD 1010-1030/mt CFR levels, a rise of USD (+10/mt) last week.
A domestic industry source informed a Polymerupdate team member, “Reliance Industries Limited (RIL) has raised PP grade prices by Re.1/kg basic with effect from February 1, 2025.”
In India, prices were firmed with offers surfacing in the market. An uptick in demand across all grades supported the price increase for goods offered in the market. Demand is expected to be stable for the next two months, with prices holding steady amid limited potential for fluctuations. Meanwhile, Indian producers are unlikely to offer any discounts for February price announcements.
In India, Middle eastern producers have offered their PP Homopolymer grades in the range of 970-990/mt CFR levels for shipment in February 2025.
In Pakistan, PP raffia and PP injection grade prices were assessed at the USD 1010-1040/mt levels, both gained by USD (+10/mt) from the previous week. PP film and BOPP prices were assessed at the USD 1030-1070/mt CFR levels, both week on week increased by USD (+10/mt). PP block copolymer prices were assessed at the USD 1040-1100/mt CFR levels, a rise of USD (+10/mt) from last week.
In Pakistan, overseas suppliers have offered their PP Homopolymer grades in the range of 1010-1040/mt CFR levels for shipment in February 2025.
In Pakistan, easing inflationary pressures prompted the country’s central bank to cut interest rates. While processing of Letters of Credit (LCs) is no longer a major stress factor, buyers continue to be worried by the prevailing political instability in the country and its adverse impact on trade sentiment. The pre-Ramadan buying activity has left sellers feeling let down, with some of them hoping for some last-minute restocking activity in the upcoming weeks.
In Sri Lanka, PP raffia and PP injection grade prices were assessed at the USD 1000-1050/mt CFR levels, both higher by USD (+20/mt) from the previous week. PP film and BOPP prices were assessed at the USD 1050-1080/mt CFR levels, both week on week increased by USD (+20/mt). PP block copolymer prices were assessed at the USD 1070-1090/mt CFR levels, up USD (+20/mt) from last week.
In Sri Lanka, Middle Eastern producer have offered their PP Homopolymer grades at the USD 1000-1050/mt CFR levels for shipment in February 2025.
In Bangladesh, PP raffia and PP injection prices were assessed at the USD 990-1020/mt CFR levels, both gained by USD (+10/mt) from the previous week. PP film and BOPP prices were assessed at the USD 1010-1040/mt CFR levels, both week on week higher by USD (+10/mt). PP block copolymer prices were assessed at the USD 1050-1100/mt CFR levels, a week on week increase of USD (+10/mt).
In Bangladesh, Middle producers have offered their PP Homopolymer in the range of USD 990-1020/mt levels, for shipment in February 2025.
In Sri Lanka & Bangladesh, fresh import offers announced were higher as compared to previous offers levels. Buyers are adopting a wait-and-watch stance to assess the response of other Asian markets in the post-holiday period.
In Far East Asia, PP raffia and PP injection prices were assessed at the USD 875-915/mt CFR levels, both rolled over week on week. PP film and BOPP prices were assessed flat at the USD 885-925/mt CFR levels. PP block copolymer prices were also assessed stable at the USD 905-935/mt CFR levels.
Supply pressure in China held constant amid expanded output capacity in the post-holiday phase. A rise in supply-side pressure caused polypropylene market prices to fluctuate. Merchants continued to be wary while expressing their unwillingness to offer shipments at discounted rates. Furthermore, downstream industries are yet to resume operations at optimum levels. The general trading atmosphere in the market was noted to be dull.
In Southeast Asia, PP raffia and PP injection grade prices were assessed at the USD 940-980/mt CFR levels, both constant from the previous week. PP film and BOPP prices were assessed flat at the USD 950-990/mt CFR levels. PP block copolymer prices were assessed stable at the USD 990-1020/mt CFR levels.
In Southeast Asia, a small number of suppliers experienced inventory pressure, with some curious to see if this would translate into future price support as supply was projected to tighten slightly on account of maintenance turnarounds and shutdowns in the Middle East and Southeast Asia. However, buyers continued to exercise caution when it came to holding surplus feedstock inventories. Some of them anticipate an expected slowdown in purchasing activity to exert an adverse impact on prices, though there are no immediate signs of the same as yet. Buyers and sellers are eager to restart discussions once business activities restart fully after the holidays.
Feedstock propylene prices on Tuesday were assessed flat at the USD 865-875/mt CFR China levels, while FOB Korea propylene prices were also assessed steady at the USD 845-855/mt levels.
In plant news, Sinopec Jiujiang Company is in plans shut its Polypropylene (PP) unit in April 2025. The exact date and duration of the shutdown could not be ascertained. Located in Jiujiang, China, the PP unit has a production capacity of 130,000 mt/year.
In other plant news, OQ is likely to restart its No.2 Polypropylene (PP) unit in early February 2025. The unit was shut for maintenance in mid-December 2024. Located in Sohar, Oman, the No.2 unit has a production capacity of 170,000 mt/year.
In another plant news, NATPET has undertaken a planned shutdown at its Polypropylene (PP) unit on January 26, 2025 for maintenance. The unit is likely to remain offline until mid-February 2025. Located at Yanbu, Saudi Arabia, the unit has a production capacity of 420,000 mt/year.
