PP Market Stays Rangebound as Global Oversupply Weighs on Sentiment

Key Highlights

1. Indian PP raffia offers remain steady at ₹82,000–₹83,500/MT across hubs.
2. China’s PP prices fell 5.35% in November amid excess supply and weak demand.
3. Shutdowns at Fund Energy Ningbo and restarts by Datang Duolun impact regional supply flows.
4. Market outlook remains soft; ample inventories and muted buying cap upside.

Market Price: PP Raffia Prices Hold Steady as China Market Trends Softer

The Indian PP raffia market remains stable with varied offers across sourcing hubs.
PPHP Raffia (Marlex HGX030SP) is offered at ₹82,000/MT ex-Mundra, while MRPL HR003 offers range between ₹82,750–₹83,500/MT depending on logistics and delivery points such as Bhiwandi, Ahmedabad, and Mundra.

In contrast, China’s domestic PP market experienced a downward trend in November, with the benchmark PP wire drawing index slipping to 6,363 RMB/ton, reflecting a 5.35% decline month-on-month. Market sentiment remained bearish due to excess supply and subdued downstream purchases.

Demand & Supply: Weak Demand and Ample Supply Keep PP Market Under Pressure

Raw Material Influence

Crude prices softened in early November due to OPEC+ output concerns and global macro weakness, reducing feedstock cost sentiment. Propylene inventories tightened in the latter half, briefly stabilizing PP values. Overall feedstock volatility offered only moderate cost support.

Supply Conditions

China’s PP industry operated around 77.5% utilisation, with weekly output averaging ~810,000 tons and inventory near 870,000 tons, signalling ample availability. Maintenance shutdowns were largely offset by restarts, keeping net supply steady and limiting upside pressure on prices.

Demand Scenario

Consumer sentiment in China remained weak despite seasonal retail events like Double 11. Export-facing sectors were restricted by tariff risks and global demand softening. End-user factories ran at subdued rates, and their reluctance to build inventory reduced procurement momentum. The Indian market saw inquiries but overall off–take remained selective.

Market News: Plant Shutdowns, Restarts and Domestic Schemes Shape Market Tone

• Fund Energy Ningbo is scheduled to shut its PP plant (440,000 TPA) on 8 December 2025 for maintenance.
• China Datang Duolun aims to restart PP units in Inner Mongolia with a combined capacity of 460,000 TPA.
• RIL announced domestic PP scheme benefits for November 2025:
  • ₹1,250/MT for buyers lifting ≥9% annualised APR quantity
  • ₹1,750/MT for ≥12% annualised APR quantity
  • ₹500/MT additional benefit for ICP buyers.
• IOCL and OPAL reduced HDPE and LLDPE prices by ₹1,000/MT, effective 4 December 2025, while PP prices remain unchanged; PE price protection has been withdrawn.

Market Expectation: PP Prices Expected to Stay Soft with Limited Near-Term Upside

Market fundamentals indicate continued price pressure or range-bound movement for PP:

• Ample supply and restrained downstream demand remain key drags.
• Feedstock cost direction will be influenced by crude volatility and currency trends.
• Maintenance shutdowns may temporarily tighten availability, but restarts and high base capacity offset most upside risk.

With weak terminal demand and elevated inventories, the PP market is likely to remain soft with small corrective fluctuations into mid-December, unless strong buying momentum or unexpected supply disruptions emerge.