PPH hits around 5-year lows across global markets

Key PPH markets in the Middle East and Asia are retreating to levels not seen since the early pandemic era. Despite September being a typical peak-demand period, prolonged oversupply, subdued buying, and structurally weak global demand—particularly in automotive and durable goods sectors—have kept prices under pressure. China’s sluggish domestic consumption and rising self-sufficiency amid new capacity additions have further weighed on global sentiment, feeding into weakness across other regions.

From Saudi Arabia and China to Southeast Asia and Türkiye, local and import raffia and injection prices are hitting around 5-year lows. Competitive offers from Middle Eastern and South Korean suppliers intensify pressure, while limited domestic demand and cautious buyers cap any potential rebound, leaving the market broadly constrained.

Saudi Arabia: Local PPH market hits its lowest since the pandemic

In Saudi Arabia, a major producer cut its September PPH offers by SAR34/ton ($9/ton) from August, bringing prices to a new all-time low on a weekly average, as weak demand and bearish sentiment persist despite supply management efforts. Prices have been lower since August due to the absence of significant demand drivers.

The low ends for PPH raffia&injection and fibre hit their lowest level in about 5 years in Saudi Arabia’s local market, ChemOrbis Price Index revealed.

China: Local raffia market at half-decade lows amid sluggish buying

China’s PP market continued its downward trend into mid-September, with local homo-PP raffia prices hitting their lowest levels since April 2020. Despite entering the traditional peak demand season, domestic buying remained minimal, as most purchasers limited orders to immediate needs. Weak futures and persistent oversupply weighed heavily on sentiment, while firm propylene feedstock prices were insufficient to prevent further price erosion.

Import offers, particularly from the Middle East, also softened, hovering at more than two-year lows, highlighting the broad pressure across both domestic and international markets.

Oversupply remains a key concern, as new production continues to outpace demand recovery. Reduced operating rates at some facilities and tepid end-use consumption have done little to ease high inventories. A stronger yuan and global price competition have stalled export activity, leaving domestic sales as the primary outlet—though demand remains weak. Market participants note that even with potential support from sectors like autos and electronics, any rebound in PP prices is expected to be modest and short-lived unless broader market fundamentals improve.

Southeast Asia: PP market slides to 5-year lows amid fierce competition

A similar scene was observed in Southeast Asia, where the overall import PP raffia&injection range hit its lowest level since May 2020 on a weekly average. Competitive South Korean offers intensified pressure, forcing other suppliers to lower their prices to stay competitive, highlighting the ongoing fragility in supply-demand fundamentals.

Plus, Thailand’s local homo-PP raffia market has already sunk to its lowest level since late August 2020, underlining the fragility of regional demand. Weak domestic demand compounded the downward trend. Many end-users across the region have limited buying to immediate needs, and some converters have shut operations due to insufficient orders.

Türkiye: Mid-East PP tests under $900s

Türkiye’s PP raffia market broke below the psychological $900/ton CIF threshold toward mid-September, hitting five-year lows amid weak demand and pressure from the Chinese market. Saudi Arabian PPH raffia offers were confirmed at $880-890/ton CIF, with fibre at $930/ton, marking the lowest levels since mid-2020.

Sellers faced mounting pressure as converters reported weak downstream demand and reduced operating rates, while some South Korean suppliers reportedly planned to cut capacity after selling at a loss. In China, PP markets remained under strain from sluggish demand, weak futures, and persistent oversupply, dampening global sentiment. With Middle Eastern raffia offers as low as $820/ton CIF China, the narrowing Türkiye-China gap suggests current Turkish prices are broadly reasonable, though players debate whether thin margins will set a floor for the market in the near term.