PP Prices Stagnant Amid Balanced Supply-Demand Dynamics

Polypropylene (PP) prices remain steady in domestic and global markets as supply outpaces demand. Domestic output has increased slightly, with abundant inventories and moderate seasonal demand in sectors like packaging. Global supply chains are supported by imports, while maintenance shutdowns in China and Saudi Arabia contribute minimally to price movements.

Key Highlights

  1. Current Prices: PPHP Raffia and IM grades are priced at ₹93,350-₹94,250/MT in Bhiwandi and Mundra, while PPHP TQ Film is ₹97,700-₹98,734/MT.
  2. Demand-Supply Dynamics: Supply is ample, with increased domestic output and healthy imports. Demand remains weak due to seasonal factors and cautious downstream activity.
  3. Global Developments: Maintenance shutdowns in China and Saudi Arabia have not significantly disrupted supply, with global inventories remaining healthy.
  4. Market Outlook: PP prices are expected to stay stable as weak demand and cautious purchasing behaviors limit the potential for upward price trends.

Polypropylene Market Update: Prices and Trends

  • The current prices of polypropylene homopolymer (PPHP) grades in the Bhiwandi and Mundra markets are as follows: PPHP Raffia is priced at ₹93,350/MT in Bhiwandi and ₹94,250/MT in Mundra. 
  • For PPHP IM, the prices stand at ₹93,000/MT in Bhiwandi and ₹93,250/MT in Mundra. Meanwhile, PPHP TQ Film is priced at ₹97,700/MT in Bhiwandi and ₹98,734/MT in Mundra.

polymerbanner.png

Stable PP Prices Amid Strong Supply and Slow Demand

  • The polypropylene (PP) market continues to experience sufficient supply levels both in Europe and domestically. In Europe, material availability remains strong despite minor production glitches in December and January, supported by healthy import inflows from South Korea, Vietnam, and China. 
  • Reduced freight rates have further bolstered supply. Domestically, the PP industry load levels have risen slightly to 78.5%, with an average weekly output of 730,000 tons. Newly operational facilities are facing stability issues, but overall supply remains abundant, providing moderate support to spot prices.
  • Demand sentiment remains tepid across regions, with downstream users showing weak purchasing activity. In Europe, restocking momentum post-winter holidays has been lackluster, with buyers relying on spot purchases driven by competitive import alternatives. 
  • Domestically, seasonal factors like fertilizers, cement, and rice packaging have kept demand rigid, but consumption for plastic weaving and other sectors has slightly declined. Pre-holiday replenishment activities have offered a temporary boost, but businesses remain cautious, with demand fluctuating weakly.

Polymer News: Global Pricing, Supply, and Market News

  • Jinneng Science and Technology has restarted its No.1 Polypropylene (PP) Line, which was shut on 31st December, 2024 for short maintenance work. The Line is located in Qingdao, China with a production capacity of 450,000 Tons/Year.
  • Shandong Yulong Petrochemical has temporarily shut its No.3 Polypropylene (PP) Unit at its Complex on 8th January, 2025 for maintenance work. The Unit is located in Yantai, China with a production capacity of 400,000 Tons/Year.
  • NATPET is planning to shut its Polypropylene (PP) Plant on 26th January, 2025 for planned maintenance work of around three weeks. The Plant is located in Yanbu, Saudi Arabia with a production capacity of 400,000 Tons/Year.
  • Sinopec Qilu Petrochemical has shut its Polypropylene (PP) Unit on 6th January, 2025 for maintenance work. The Unit is located in Zibo, Shandong, China with a production capacity of 70,000 Tons/Year

newsbanner.png

Expert Opinion: Global Polypropylene Market in Focus

  • PP prices are expected to remain largely stable in the short term as supply continues to outpace demand.
  • Weak downstream demand and cautious purchasing behaviors, driven by ample import options and seasonal factors, suggest limited movement in pricing.
  • While crude oil and propylene markets offer moderate support to PP costs, the effect is insufficient to trigger significant price increases.
ved bot