SEA’s import PP extends downtrend into August; prices dip further from 19-month lows

Import PP prices in Southeast Asia extended their downward trend into early August, slipping further from their lowest levels in over 19 months as of the week ending August 8. Despite some sellers’ attempts to hold offers steady, weak buying interest and bearish sentiment continued to dominate, exerting sustained downward pressure on PP prices and casting a shadow over the near-term outlook.

Pressure mounts; most origins down

Persistent regional demand weakness prompted most mainstream suppliers to adjust their offers downward, especially as aggressively priced Chinese cargoes continued to flood the market. Over the week ending August 8, import homo-PP raffia and inj. offers from all origins were assessed $5-10/ton lower on a weekly basis, while PPBC inj. saw rollovers to $10/ton weekly drops.

Offers for Chinese homo-PP raffia and inj. were reported at $875-890/ton CIF SEA, cash, undercutting most other origins and intensifying competition. While offers from the Middle East largely held steady, deals were still concluded at relatively low levels, with one transaction done at $900/ton CIF. South Korean materials also changed hands at $880/ton CIF, nearly matching the lower end of Chinese pricing—indicating that actual deals for Chinese resins may have settled at even more competitive levels.

In the PPBC inj. segment, ASEAN-origin materials also witnessed softer offers. Thai PPBC inj. was quoted at $970-990/ton CIF SEA, while Singaporean cargoes surfaced at $1000/ton on a similar basis. Meanwhile, Saudi-origin PPBC inj. appeared at $940/ton, forming the low end of the price range for this grade.

Slack demand keeps characterizing market

Sluggish demand, accompanied by ample supply, kept defining Southeast Asia’s PP landscape, making it gloomier compared to the region’s PE market. A Vietnam-based polyolefin trader emphasized the imbalance, saying, “Demand remains weak, while supply is ample, leading to lower prices.”

Across the region, buyers largely stuck to just-in-time procurement strategies amid fragile downstream sectors and sluggish end-product consumption. A converter commented, “Demand from end users is still poor and may deteriorate further toward year-end.”

Uncertainty surrounding global trade policies further dampened market sentiment. A Vietnamese converter voiced concern about the impact of newly imposed US tariffs, stating, “The US tariffs have dampened market activity. India is facing an additional 25% duty, while the outcome of the China-US deal remains uncertain.” These external risks heightened anxiety and reinforced the wait-and-see stance among buyers, who remained wary of potential disruptions and further price volatility.

With ongoing concerns about weak demand and long supply, market participants continued to hold a downbeat view for the near term. As a trader observed, “Downstream buyers are still managing inventories strictly. End-product demand remains limited, so buyers only replenish when they receive new orders. We see limited upside in the short term, and PP prices may remain flat or soften further.”

Chinese exporters struggle in SEA despite competitive pricing

The region’s persistent demand weakness has also hindered Chinese exporters from redirecting cargoes to Southeast Asia, despite offering highly competitive prices. While Chinese homo-PP continued to be offered at attractive levels, it has not translated into lucrative sales.

A source from a Chinese producer admitted, “Southeast Asian buyers are cautious and facing their own uncertainties. Some are waiting for prices to drop further.” This indicated that despite the pricing advantage for Chinese shipments, the region’s weak fundamentals prevented it from absorbing surplus supply from China.

Multiple suppliers echoed the sentiment that buyers in the region have preferred to stay on the sidelines, anticipating further price reductions before committing to new purchases. This wait-and-see behavior has become a major obstacle for sellers attempting to redirect excess cargoes into Southeast Asia amid subdued global demand.