Polypropylene Prices in the Asian Market During the First Half of February 2025

Key Highlights

1. PP Price Trends: PPHP prices vary across Indian locations, with Lamination grade at ₹104,500/MT (Hyderabad) and Raffia grade as low as ₹97,000/MT (Mundra).
2. Supply Constraints: Production outages in Asia and Middle East, high freight costs, and Lunar New Year disruptions drive price increases.
3. Sectoral Demand: Packaging demand remains strong, but automotive and construction sectors face headwinds from inflation and high costs.
4. Industry Updates: Key producers like Lotte INEOS, Fujian Zhongjiang, and Jinneng Science have resumed operations, while IOCL maintains stable PP prices.
5. Market Outlook: Prices expected to rise further due to continued supply disruptions, especially ahead of Ramadan, though demand recovery remains uncertain.

Polypropylene Price Trends Across India

• The pricing for PPHP from MRPL varies across different types and locations. 
• Lamination grade is priced at ₹104,500/MT in Hyderabad, ₹104,000/MT in Ahmedabad, and ₹101,000/MT in Rajkot. 
• Injection Moulding (IM) grade ranges from ₹98,500/MT in Bhiwandi, Mundra, and Rajkot to ₹100,000/MT in Delhi and Ahmedabad, with Daman and Hyderabad at ₹99,000/MT. 
• Raffia grade is the lowest-priced, with Mundra at ₹97,000/MT, followed by Hyderabad at ₹98,000/MT and Bhiwandi, Daman, and Rajkot between ₹97,500-99,500/MT. 
• TQ Film grade is priced at ₹101,000/MT in Mundra, ₹99,000/MT in Bhiwandi.

Global Supply Disruptions Tighten PP Availability

• The Asian PP market experienced significant price increases in the first half of February 2025, driven by a combination of supply constraints and logistical challenges. 
• Supply shortages from key producers in the Middle East and Asia, coupled with multiple plant outages, tightened availability across the region. 
• South Korean suppliers, a major source of historically lower-priced imports, raised their PP prices for February deliveries, prompting other regional producers to follow suit. This shift forced buyers to rely more heavily on domestic supply, which trades at a premium compared to imports.  
• The Lunar New Year slowdown further exacerbated supply disruptions, as production and shipping activities in Asia were temporarily halted. High freight costs and shipment delays added to the challenges, limiting the flow of imports into the region. 
• Additionally, rising feedstock propylene (polymer grade) costs contributed to the upward pressure on PP prices. Despite these constraints, domestic supply in Asia remained moderate, slowing the pace of price increases by mid-February.  

Demand Analysis: Packaging Strong, Other Sectors Struggle

• Demand for PP in Asia remained weak, with only the packaging sector showing resilience. The automotive and construction industries, key end-users of PP, continued to struggle. 
• In the automotive sector, regional demand was mixed, with some markets showing modest growth while others faced declines. Similarly, the construction industry in Asia faced headwinds due to high inflation, rising material costs, and elevated interest rates, which dampened demand for PP in this sector.

Industry Updates: Key Producers Resume Operations

• Lotte INEOS Chemical has ramped up operations at its Vinyl Acetate Monomer (VAM) plant in Ulsan, South Korea, to full capacity. The plant consists of two production lines with a total capacity of 480,000 tons per year.
• Indian Oil Corporation Limited (IOCL) has rolled over the prices of Polypropylene (PP), High-Density Polyethylene (HDPE), and Linear Low-Density Polyethylene (LLDPE) effective from February 20, 2025.
• Fujian Zhongjiang Petrochemical has restarted its Polypropylene (PP) unit in Fuqing, China, after completing maintenance work. The unit, which was shut down on February 12, 2025, has a production capacity of 350,000 tons per year.
• ONGC Petro additions Limited (OPAL) has extended the Early Bird Discount scheme for HDPE until February 25, 2025.
• Jinneng Science and Technology has restarted its No.3 Polypropylene (PP) production line in Qingdao, China. The line, which was shut down for maintenance on February 9, 2025, has a production capacity of 450,000 tons per year.
• Hanwha from South Korea has offered PVC grades P1000SB, P1000, and P1000F at USD 740 per metric ton, CIF Nhava Sheva port, on an LC at sight basis for March 2025 shipment.

Market Outlook: Polymer Prices Likely to Climb Further

• It is expected that Asian PP prices will rise further in the near term due to supply disruptions, particularly from the Middle East ahead of Ramadan, which may tighten availability. 
• While restocking activity is anticipated to increase, demand recovery remains uncertain, especially in the automotive and construction sectors.