China’s import PP markets soften from over 4-month highs

Import PP prices in China experienced their first drops since late October after a two-week stability, pulling back from over four-month highs, according to ChemOrbis Price Index data. Despite stronger cost support in recent weeks, with propylene prices on CFR China basis rising by $30/ton over the last two revisions, pre-Chinese New Year purchases have slowed.

“The increase in demand from the film packaging sector has subsided recently, while demand from the retail, food, and pharmaceutical sectors remains moderate,” noted a Chinese converter.

PPBC inj. prices break below $900 threshold at low end

In the latest assessments, import PPBC inj. prices in China remained stable at the high end while the low end of the range dropped below the $900/ton mark for the first time since early October. Prices were assessed at $890-970/ton CIF, cash basis this week. Similarly, import homo-PP raffia and inj. prices were stable to $10/ton lower from a week earlier to be assessed at $880-950/ton with the same terms.

Aside from the receding demand, players highlighted worsening fundamentals across the market, driven by mounting supply pressures from gradual plant restarts. “The oversupply issue is intensifying, and there’s no sign of demand improvement ahead of the year-end as in previous years,” remarked a Chinese producer.



Bearish sentiment expected to persist

Market players largely anticipate the bearish trend to continue, with expectations of stable to softer pricing in the near term.

“Looking ahead to January, as the Chinese New Year approaches, supply-demand dynamics in China are expected to weaken further. It is unlikely that PP prices will revisit their recent highs, though declines may be limited by macroeconomic support. We anticipate weak and narrow fluctuations over the short term,” commented another Chinese trader.