Renewed drops push import PP prices to over 1.5-year lows in SE Asia

The import PP markets in Southeast Asia have mostly tracked a downward trend since the second half of March, with the exception of a brief rebound in mid-June. As of the week ending July 11, the weekly average prices for PPBC injection hit their year-to-date low, while homo-PP raffia and inj. touched the weakest point since late December 2024, according to data from ChemOrbis Price Index.

Unfavorable supply-demand dynamics remain key pressure point

The primary drag on the import PP market continued to be sluggish demand, despite sporadic and modest signs of recovery. Buyers across the region kept their procurement volumes limited due to macroeconomic headwinds, including tariff uncertainties and ongoing tax reforms in several countries. These challenges have reportedly disrupted operations across various downstream sectors.

A Vietnamese trader commented, “Demand has slightly recovered compared to last month, but it’s still far from strong.” An Indonesian converter noted, “With the overall business environment becoming more challenging, order intake remains slow. Meanwhile, we continue to favor local supply when making purchasing decisions. Import appetite remains tepid.” In Malaysia, buyers were adopting a wait-and-see stance in response to the newly implemented Sales and Service Tax (SST).

Meanwhile, supply remained ample, featuring lower offers from both regional and Northeast Asian suppliers. Chinese-origin cargoes, in particular, continued to form the low end of the price ranges for both homo-PP and PPBC grades.

Homo-PP offers below $900/ton mark resurface

Numerous offers for Chinese-origin homo-PP raffia and inj. were centered around the low-$900s/ton CIF Southeast Asia, cash basis. A Vietnamese trader even reported an offer as low as $890/ton on the same terms. These competitive levels undercut most other origins, maintaining a competitive edge for Made-in-China resins and reinforcing their presence in Southeast Asia.

According to ChemOrbis Stats Wizard, China was the largest supplier of homo-PP to the region during the first four months of 2025, accounting for more than 23% of total imports—twofold higher than the market share of Saudi Arabia. Likewise, Southeast Asia was the top export destination for Chinese homo-PP during the same period, taking up approximately 37% of the country’s total exports, far ahead of other outlets.

S. Korean, ASEAN offers add to downward pressure

In addition to the flow of Chinese cargoes, reduced offers from South Korea and ASEAN suppliers have further weighed on market sentiment.

South Korean homo-PP raffia was offered at $910–930/ton CIF, cash, narrowing the price gap with Chinese materials. A regional producer also lowered their offers for homo-PP raffia and inj. and PPBC inj. grades by $20/ton week-on-week, contributing to the overall softness in the market.

Deals for ME cargoes closed at attractive levels

Although Middle Eastern offers were largely stable at $910-935/ton CIF Southeast Asia, cash basis, several deals were concluded at more competitive levels, according to market sources. In Vietnam, transactions were finalized at $920/ton CIF, cash. Meanwhile, some deals were reported at even lower levels of $900-910/ton on a similar basis, highlighting intensifying competition among suppliers in the regional PP market.