India’s PP markets dragged down by competitive Chinese offers amidst easier ME supply

Pressure on Middle Eastern PP sellers to India has grown due to a bearish Chinese market and declining freight rates for the China-India route, along with Mid-East suppliers resuming production after turnarounds. Thin demand and abundant supply are expected to keep import PP prices in India low, with most players not expecting a recovery as feedstock prices also remain weak. Meanwhile, news that a supplier from Oman is offering PP raffia at $950/ton CIF India, close to Chinese prices of $940-970/ton CIF, is seen as another bearish signal.

Imports down to almost 2-month lows

The weekly average prices for import homo-PP raffia and inj. from the Middle East declined to their almost two-month lows, according to ChemOrbis Price Index. In the week ending on March 29, the overall price range was assessed stable to $20/ton lower from a week earlier at $950-1000/ton CIF India, cash, ending a five-week period of stability. Meanwhile, prices have decreased by around 7% since early July 2024, despite a 5% rise from mid-January this year.



Trading was reported to be challenging for suppliers offering at the high ends of the price range as buyers mostly opted for shipments at the low ends. “While there are offers in a $980-1000/ton CIF India range, it is difficult for these to be converted to deals as players know Chinese shipments are available at much more competitive prices,” remarked a trader.

There was also limited interest in procuring shipments ahead of annual contracts to be signed from the beginning of the next month, when buyers are typically not keen to build up stocks. Besides, freight rates kept putting pressure on prices of import shipments from China into India.

Heavy flow of Chinese origins exerts further pressure

According to ChemOrbis Stats Wizard PRO data, China exported almost 240,000 tons of PP in February, marking the largest monthly volume since April 2024. Total PP imports in February were slightly above 307,000 tons, up 16% from a month earlier. “The presence of ample shipments from China at low prices is putting pressure on suppliers in the Middle East to cut their offers to levels comparable to the former,” said a major trader in India’s trading hub of Mumbai.

Export homo-PP raffia prices stayed stable for the second straight week, assessed at $900-930/ton FOB China, cash. Additional tariffs on exports dampened orders, dragging down transaction activities.

Tightness in Mid-Eastern supply to ease

The number of sellers offering to the Indian market increased noticeably compared with the previous month as more producers based in the Middle East were expected to be returning from maintenance turnarounds, market players said. “Going forward, we expect more capacities to be returning back to the stream from shutdowns, which will certainly ease the supply situation,” an Indian trader said. According to the trader, there were more offers from the Middle East in the previous week, although volumes were lower because of Ramadan. “This shows that the supply situation is gradually easing,” he added.

Nevertheless, traders also noted that the market was slow, with limited Middle Eastern offers due to Ramadan and the Eid festival starting on March 31. The reduced workforce during Ramadan also impacted production rates at downstream operators.

Feedstock propylene plunges to 4-month lows

Persistent declines in feedstock propylene markets, driven by oversupply and limited buying interest also hit PP prices. Propylene prices both on a CFR China and FOB South Korea basis experienced a four-week downtrend, pulling markets down to their lowest levels since early December 2024. ChemOrbis Price Index shows propylene prices have fallen by about 5% since the second week of February, to the current levels of $825/ton CFR China and $805/ton FOB South Korea.

Traders have remained cautious, with buyers focusing on local purchases. Recent restarts to propane dehydrogenation plants and new units being commissioned in China have added to the supply concerns.