PP extends gains post-holiday in SE Asia as market watches demand recovery

Southeast Asia’s PP markets entered the post-holiday period with fresh gains in both import and domestic segments as per players’ previous expectations. The uptrend has largely been led by bullish sentiment and supply tightness, as uneven demand has yet to lend solid support. Meanwhile, compared to the parallel rally in the region’s PE market, PP has shown milder momentum, while buying appetite remained measured in both polyolefin chains.

Import prices at over 5-month peaks

Import PP prices climbed further in the first post-holiday week, extending the uptrend kicked off in mid-January. ChemOrbis Price Index shows that the recent hikes pushed the market to its highest levels in more than five months, with prices surpassing or approaching significant psychological thresholds. The high end of homo-PP raffia and inj. offers moved above the $900/ton mark on a CIF Southeast Asia basis, while PPBC inj. prices also moved closer to the high-$900s/ton CIF.

The upward move was broad-based across major suppliers, including Middle Eastern, South Korean, and ASEAN producers, whereas Chinese suppliers also offered at elevated levels of up to $910/ton CIF, cash. Sellers maintained firm stances amid limited spot availability, while some chose to delay fresh quotations in anticipation of securing higher netbacks in the near term.

Local offers edge higher across parts of region

A major Indonesian producer issued continuous increases in its domestic PP prices, ranging from IDR80,000-90,000/ton in the latest price list. The moved underpinned the ongoing uptrend in Indonesia’s local PP market, with homo-PP raffia and inj. grade experiencing a relentless rise in the past seven weeks.

Thailand also recorded further domestic price gains, with suppliers citing constrained supply conditions as justification. Nevertheless, trading volumes were not particularly robust, with many converters prioritizing confirmed downstream orders before replenishing raw materials.

Vietnam’s domestic market displayed firmer conditions right after reopening from the prolonged Tet break. Local PP prices rose by around VND500,000/ton compared to pre-holiday levels. However, market participation was still somewhat limited as some players had yet to fully resume operations. Buyers generally adopted a need-based purchasing strategy, especially those holding sufficient inventories through April.

Tighter supply, robust costs meet cautious buying

Supply conditions remain broadly supportive. Import availability was perceived as tight, and upstream cost pressure persisted amid firm crude oil futures and rising propylene prices across Asia. The steady increase in feedstock values reinforced sellers’ stance to defend higher PP levels and curtailed discounting.

At the same time, demand recovery across the region was uneven. While some downstream sectors report improved operating rates after the holiday, widespread restocking had yet to materialize. Many converters continued to rely on pre-holiday inventories and preferred hand-to-mouth purchases.

Highlighting the mismatch between supply and demand fundamentals, a Thai trader opined, “While supply-tightening news has driven price hikes, buyers remain focused on securing end-product orders before committing to fresh raw material purchases. The prevalent strategy is to buy strictly on a need basis.”

Adding to cautious demand, resistance started to build. Buyers appeared increasingly sensitive to additional hikes at current levels, suggesting that further upward attempts might encounter slower acceptance. “We prefer to purchase when needed, as current pricing levels are high for us to accept, especially because our inventory coverage is sufficient until the end of April,” said a Vietnamese trader.