PP Market Extends Decline amid Weak Demand and Rising Inventories

Key Highlights

1. PP prices dropped $10–20/MT week-on-week amid bearish sentiment.
2. Inventories in China stayed above 920,000 tons despite stable operations.
3. Indian producers, including RIL and GAIL, cut polymer prices by ₹1,000–2,500/MT.
4. Market expected to remain range-bound with mild recovery in film-grade demand.

Polypropylene Prices Extend Decline Amid Year-End Selling

• Polypropylene (PP) prices extended their downward trend this week as traders focused on clearing inventories and achieving year-end sales targets. 
• Spot offers and PP futures on the Dalian Commodity Exchange witnessed declines, further weighing on sentiment. 
• In India, PP film prices were assessed at USD 840–860/MT CFR, down USD (-10/MT) week-on-week, while BOPP prices stood at USD 830–860/MT CFR, also down by USD (-10/MT). 
• PP block copolymer prices slipped by USD (-20/MT) to USD 840–860/MT CFR. Meanwhile, PP raffia and PP injection grades remained steady at USD 820–840/MT CFR.
• Local producers in India have reduced domestic PP prices by Re.1/kg (basic), effective November 5, 2025. Feedstock propylene prices also softened, with assessments at USD 735–745/MT CFR China (down USD -5/MT) and USD 705–715/MT FOB Korea (down USD -20/MT). 

High Inventories and Weak Demand Weigh on PP Market Balance

• In China, domestic PP operating rates remained largely stable through October, averaging 77%, with total weekly production near 780,000 tons. 
• Despite some plant restarts—such as the 400,000 tons/year Guangxi Petrochemical trial and the Zhejiang Petrochemical Line 4 restart in early November—inventories remained elevated above 920,000 tons, reflecting a supply surplus.
• On the demand side, October typically marks a peak season for polypropylene consumption in sectors like plastic weaving and agriculture; however, this year’s demand recovery was muted. Downstream players operated cautiously, constrained by global trade uncertainties, interest rate fluctuations, and weak export sentiment. 
• Although there was a slight pickup in activity towards month-end, the overall consumption momentum remains weak, resulting in continued inventory accumulation across the supply chain.

Producers Slash Polymer Prices as Oversupply Persists in Asia

• Recent easing in U.S.–China trade tensions and economic policy direction set by the Fourth Plenary Session of the Communist Party of China have slightly lifted market sentiment.
• However, persistent oversupply concerns and sluggish global demand continue to overshadow these positive developments. 
• Traders expect e-commerce-driven consumption in November to provide short-term demand support, especially in film-grade PP applications, though gains are likely to remain limited.
• RIL has decreased domestic PP prices by ₹1,000/MT, while HDPE and LLDPE prices have been cut by ₹1,500/MT. 
• LDPE prices have been reduced by ₹2,000/MT, except for LDPE EC, LD HD 22FA002, and LD IM grades, which saw a sharper reduction of ₹2,500/MT.
• GAIL has followed suit, reducing PE prices by ₹1,500/MT. Similarly, OPAL has lowered PP prices by ₹1,000/MT and HDPE and LLDPE prices by ₹1,500/MT. IOCL has also announced a price cut of ₹1,000/MT for PP and ₹1,500/MT for PE.

Market Outlook: PP Market to Stay Range-Bound with Mild Film-Grade Recovery

• The PP market is expected to remain in adjustment mode in the short term. With upstream feedstock prices showing limited support and industry operating rates staying high, supply pressure is unlikely to ease significantly. 
• Demand improvement remains constrained by both domestic and export challenges. Market participants anticipate marginal recovery in film-grade demand during November, but overall, the polypropylene market is likely to stay range-bound with a slight bearish bias until stronger end-user demand materializes.