China’s export homo-PP prices climb to over three-month high

China’s export homo-PP markets extended their upward momentum for a fourth consecutive week, with prices reaching their highest levels since mid-October 2025, even as overall demand remained weak ahead of the Lunar New Year.

According to ChemOrbis Price Index data, export homo-PP raffia and injection prices were assessed $10-20/ton higher on the week at $800-840/ton FOB China, cash. Despite thinning buying interest, sellers continued to hold firm, supported by a combination of currency strength, cost pressures, and supply-side factors.

Stronger yuan curbs export flexibility

The strengthening Chinese yuan remained the primary factor underpinning export prices. The currency appreciated further during the week, reaching its strongest level against the US dollar since May 2023, discouraging exporters from offering discounts and reducing their willingness to commit volumes unless prices improved further.

Maintenance helps ease immediate inventory pressure

Several traders said that while overall PP supply in China remained structurally long, ongoing plant maintenance helped make availability more manageable in the near term. This eased immediate inventory pressure on producers and allowed sellers to keep offers firm, even as buying interest stayed subdued ahead of the holidays.

High propylene costs reinforce sellers’ stance

Cost support also persisted. Spot propylene prices on a CFR China basis rose to $820/ton, marking the highest level since April 2025 after an 11% cumulative increase over the past month. Elevated feedstock costs further strengthened sellers’ resistance to price concessions in the export market.

Weak demand limits upside

Demand conditions, however, remained lackluster. A Ningbo-based trader noted that domestic PP prices slipped slightly mid-week after early gains, while export prices stayed resilient. “Earlier futures gains were policy-driven. Supply remains long, and demand is weak both locally and in exports. More downstream plants have closed early for the holiday. Still, export offers have shown no respite due to the stronger yuan and high propylene,” he said.