SE Asia’s import PP prices drown in mid-2020 lows as buyers stay sidelined

Import PP prices in Southeast Asia have extended their downward trajectory that began in March, reflecting relentless pressure from weak regional demand and ample supply. Despite months of price and demand weakness, trading activity remained thin as converters showed little urgency to replenish stocks, waiting instead for more favorable pricing. Market sentiment stayed weighed down by expectations of further declines and persistently poor downstream performance.

Prices slump to mid-2020 levels

As of the week ending October 31, import PP prices in Southeast Asia continued their decline, marking fresh lows consistent with the prolonged softening trend that started earlier this year.

Homo-PP raffia and injection prices fell for the second consecutive week, though at a slower pace compared to the previous week. According to the ChemOrbis Price Index, the weekly average hovered around the weakest level since the second half of May 2020. After three weeks of relative stability, PP block copolymer (PPBC) injection prices also resumed their decline, hitting their lowest since early June 2020, underscoring how the market remains far from finding a floor.

Chinese PPH remains the most competitive

Chinese-origin materials continued to outcompete other suppliers in the regional market. Import offers for Chinese homo-PP raffia and injection were reported at $800-830/ton CIF SEA, cash last week, below Middle Eastern offers at $810-850/ton on the same terms

Export offers from China were also reported lower at $790-830/ton FOB, cash, with the low end breaking through the $800/ton threshold. The midpoint of this range has now reached its lowest point since ChemOrbis began publishing its PP export price index in January 2021, signaling intensifying pressure on nearby export destinations, particularly Southeast Asia.

The growing competitiveness of Chinese cargoes reflected elevated domestic inventory levels and subdued local demand in China, prompting suppliers to redirect material to nearby markets. However, this strategy has only deepened the regional glut, leaving Southeast Asia’s import prices exposed to further downward adjustments as sellers compete for limited orders.

Muted end-use demand prolongs regional slump

The fundamental issue weighing on the market remains the persistent weakness of downstream demand. A Singaporean trader noted, “Regional oversupply continues to depress polymer prices, while finished product sectors have not recovered.” Most converters reported sluggish order inflows, with only sporadic signs of year-end improvement, limiting resin consumption despite attractive price levels.

In Indonesia, sellers were reportedly more flexible on pricing as they tried to offload material amid slow derivative demand. Similar conditions were seen in Vietnam and Thailand, where converters remained hesitant to build stocks.

“Year-end demand has improved slightly, but we don’t plan to keep high inventories of raw materials since we don’t expect prices to change much in the short term,” a Vietnamese converter said. A converter in Thailand commented, “End-user demand is weak, and the market is very quiet. Most players are taking a wait-and-see approach, believing that prices could continue to fall further.” Their remarks reflected the widespread caution across the region, as most buyers remained convinced that prices have yet to reach a bottom.