PP Exports Struggle Amid Asian Price Flood, Oversupply Pressures Intensify

Key Highlights

• PP Export Prices Fall: Homopolymer PP dropped to USD 960–980/mt and Copolymer PP to USD 1005–1025/mt FAS Houston.
• Muted Global Demand: Asian and Latin American buyers resist U.S. cargoes amid weak downstream demand.
• Oversupply Challenges: Ample availability in U.S. markets forces sellers to cut prices aggressively.
• Bearish Outlook: Continued pressure expected unless demand picks up or supply reduces.

Polypropylene Market Price

• As per the polymerupdate.com, polypropylene (PP) export prices in the United States moved lower this week amid increasing global competition and weak buying sentiment.
  1. Homopolymer PP: USD 960–980/mt FAS Houston ($35/mt from last week)
  2. Copolymer PP: USD 1005–1025/mt FAS Houston ($35/mt from last week)
• In feedstocks, upstream polymer-grade propylene (PGP) spot prices held steady at 31.50–32.00 cents/lb FOB U.S. Gulf. 
• On the contract side, July 2025 PGP settled at 37.50 cents/lb, while chemical-grade propylene settled at 36.00 cents/lb, both marking a 1.00 cent/lb decline from June levels.

Polypropylene Market Demand and Supply

• Demand for US PP exports remained muted this week as low-priced Asian cargoes continued to flood the global market, offering buyers more competitive alternatives. Importers and converters showed resistance to US-origin PP, citing weaker downstream demand in key overseas markets, particularly in Asia and Latin America.
• On the supply side, US producers faced inventory buildup pressures. Sellers were compelled to lower offers to maintain market share, especially for homopolymer grades, where competition was strongest. 
• Copolymer PP demand was slightly better due to niche applications, but it also saw downward pricing pressure. Overall, supply availability remained ample while demand lagged, skewing the market balance toward oversupply.

Polypropylene (PP) Market News

• Asian competition: Influx of competitively priced PP from Asia exerted significant pressure on US exporters, with many buyers choosing to defer or cancel contracts.
• Tariff uncertainty: Ongoing uncertainty surrounding trade tariffs and global trade policies continued to dampen optimism, leading to hesitation in long-term commitments.
• Seller strategies: With competition intensifying, US sellers were forced to adopt aggressive pricing approaches, often prioritizing volume movement over margins. 
• Market participants described the situation as one of the most competitive landscapes in recent years.

Market Expectations: Short-term Trend Remains Bearish

• Short-term sentiment for the US PP market remains bearish. Unless there is a meaningful improvement in downstream demand or a reduction in global oversupply, PP prices are likely to face further downward pressure. Buyers are expected to remain cautious, waiting for clearer signals on tariffs and global trade flows before resuming large-volume purchases.
• The market will be closely watching feedstock propylene dynamics, potential production cutbacks, and any signs of demand recovery in export destinations. Until then, US PP exporters may continue to face stiff competition from Asia and subdued global buying interest.