China Domestic PP Market Struggles with Weak Demand Amid Rising Supply Pressures and Tariff Uncertainty

Key Highlights

• Delhi Price Peak: HALDIA PPCP Random (M312 - Prime) at ₹1,06,250/MT.
• Bhiwandi Trends: PPHP Film & IM grades between ₹98,000–₹1,02,000/MT.
• Market Dynamics: Plants running at 78% capacity; demand still subdued.
• Global Impact: U.S. tariffs and rising propane prices pressuring PP margins.

Indian PP Market Price: Regional PP Price Snapshot Across India

• As of the latest market update, HALDIA PPCP Random (M312 - Prime) is priced at ₹1,06,250 per metric ton in Delhi. 
• In Bhiwandi, MRPL PPHP TQ Film (HF010) is available at ₹1,02,000/MT, while HMEL PPHP IM (M12RR) is quoted at ₹99,500/MT. 
• The MARLEX PPHP Raffia (HGX030SP) is trading slightly lower at ₹98,000/MT in Bhiwandi.
• Meanwhile, in Rajkot, MRPL PPHP Lamination (HY035R) stands at ₹1,04,500/MT, reflecting regional variations across grades and locations.

Demand and Supply: Capacity Utilization and Supply Adjustments

• The supply of PP in the market is still quite high, even though some domestic manufacturers have slightly reduced their production. Overall, factories are running at about 78% capacity, just 1% lower than in mid-April. 
• On average, China produces about 750,000 tons of PP each week. Shutdowns by some Chinese companies may slightly reduce supply and give a bit of support to PP prices.
• On the demand side, things are still slow. Most buyers are only purchasing what they really need. While the plastic weaving industry is steady, demand from construction and farming is starting to pick up as the weather gets warmer. 
• However, global trade issues especially the U.S. raising tariffs have made exports harder. This has caused buyers to place only small and occasional orders, so overall new orders in the market are still low.

News: Global Trade Headwinds Affecting Sentiment

• The U.S. tariff policy introduced in early April has introduced volatility, triggering a broader global economic impact and disrupting trade dynamics.
• Crude oil prices initially dropped sharply due to trade war effects, but have rebounded on the back of OPEC+ commitments to curb overproduction and ongoing geopolitical tensions.
• Domestic propane prices rose due to trade decoupling pressures, squeezing margins for PDH-based propylene producers. This has contributed to fluctuating raw material prices and added to cost-side volatility for PP.
• Maintenance activities across several PP production sites have resulted in temporary supply tightening, signaling potential short-term recovery signals on the supply front.

Expert Opinion: Watch for Cost Volatility and Gradual Demand Uptick

The market remains caught in a tug-of-war between supply contraction and weak demand. With cautious trading sentiment and limited new orders, short-term price recovery is likely to be gradual. Stakeholders are advised to closely monitor global tariff developments and upstream cost movements to gauge future PP market direction.