South Korean PP offers intensify competition as SE Asia’s market hits multi-year lows

Southeast Asia’s PP market weakened further this week, with competitive South Korean offers adding to the mounting pressure in an already bearish landscape. Buyers across the region remained cautious, limiting purchases to immediate needs, while downstream demand continued to disappoint.

Aggressive South Korean pricing drags market lower

Import homo-PP raffia and injection prices in Southeast Asia were assessed $20/ton lower week-on-week at $850-930/ton CIF, cash. Middle Eastern cargoes were quoted at $870-890/ton, while ASEAN-origin materials largely formed the upper ends. South Korean suppliers set a new low in the market, with a shipment of homo-PP raffia sold at $850/ton CIF, the bottom of the range.

In the PP block copolymer (PPBC) injection market, prices from most origins were assessed stable to $20/ton lower at $890-990/ton CIF. But South Korean suppliers again stood out, offering at $870/ton—close to raffia levels—though the price was excluded from the broader assessment. A Vietnamese trader noted, “These aggressive levels forced other producers to lower their prices to maintain competitiveness,” intensifying the downward spiral.

Prices fall to multi-year lows

According to the ChemOrbis Price Index, weekly averages of homo-PP raffia and injection fell to more than two-year lows, while PPBC injection sank to its lowest point since June 2020. The prolonged weakness highlights how fragile supply-demand fundamentals remain in the region.

Demand muted across domestic markets

The bearish trend was also visible in local markets. A Thai converter reported domestic PP raffia and injection prices down by THB1000/ton ($30/ton), with additional discounts available for concluded deals. In Indonesia, a major producer trimmed its PP list prices by IDR60,000-170,000/ton ($4-11/ton), reflecting sluggish buying interest.

Elsewhere, sentiment was equally weak. A Vietnamese converter said, “End-user demand has decreased significantly due to a fragile economy, high competition, and shifting policies. Many converters have already shut down operations after failing to secure new orders or cover costs.”

Fresh supply adds to pressure

The restart of Long Son Petrochemical’s PE/PP units in Vietnam is set to release fresh PP volumes into Asia. Operated by Thailand’s Siam Cement Group (SCG), the complex houses 400,000 tons/year of PP capacity. A regional trader commented, “This restart could add further competitive pressure in Asia’s PP trade.”