Rising PP Supply Outpaces Seasonal Demand Gains, Market Remains Pressured

Key Highlights

• Flat Prices – All PP grades unchanged, no daily movement.
• Rising Supply – Operating rates at 76%, inventories high at ~800,000 tons.
• Mild Demand Recovery – Seasonal pickup noted but offset by holiday slowdown.
• Weak Outlook – Market to remain rangebound with a bearish tilt.

PP Market Price Trends: PP Grades Stay Flat)

• Domestic polypropylene (PP) prices continue to run weak towards the end of September.
• Limited cost support from upstream crude oil and propylene, coupled with abundant supply, has pressured spot market values. 
• Seasonal propane firmness has provided only partial balance, but overall PP remains under downward pressure.

Today's Offer: 24th September 2025

1. Raffia grades (Marlex, MRPL): stable at ₹88,000/MT in Ahmedabad & Bhiwandi.
2. Film grade (MRPL TQ Film): steady at ₹91,000/MT in Mundra.
3. Injection molding (IM) grades: ranging ₹89,000–91,500/MT across Delhi, Bhiwandi & Mundra.
4. Lamination grade (MRPL): highest among listed at ₹94,500/MT in Rajkot.
5. PPCP Random (IOCL 3120MA): at the top end, ₹95,000/MT in Delhi.
6. All grades unchanged (ΔD: ₹0) → Market flat, no price movement today.

Supply–Demand Dynamics: Loose PP Supply, Mild Demand

• On the supply side, domestic PP operating rates have inched up, with average load levels now around 76%. Major units such as Daqing Refining & Chemical and Huizhou Rio Tinto have resumed operations, while Ningxia Baofeng’s third line is set to return soon. 
• This has lifted weekly output to ~770,000 tons, with on-site inventories at a controllable but high level of ~800,000 tons. The trend of loose supply continues to weigh heavily on the market.
• Demand has seen modest seasonal improvement, particularly in plastic weaving, agriculture, and packaging films, with new orders adding some momentum. 
• However, downstream processors are maintaining low operating loads, and the upcoming National Day holidays are slowing digestion rates, leading to weak overall demand support despite the supposed peak season.

Market News & Drivers: Costs Provide Little Support)

• Upstream dynamics have provided limited support. Crude oil markets have stabilized amid a relaxed Eastern Europe geopolitical outlook and steady OPEC+ production increases, while global demand has temporarily softened, keeping oil prices in low-fluctuation mode.
• Propylene’s earlier price boost from Haiwei’s plant maintenance has now faded, leaving supply ample and weighing on sentiment. On the propane side, seasonal heating demand is keeping prices firm but not strong enough to pull PP values upward.
• Meanwhile, several PP production units in China have resumed operations post-maintenance, significantly adding to domestic availability. 
• Inventories remain ample, signaling no immediate supply crunch. The mismatch between stable-to-soft costs, high operating rates, and only mild demand recovery continues to cap any sustained bullish move.

Market Outlook: Weak, Rangebound Bias

Looking ahead, PP prices are expected to remain in a consolidation phase with weak bias. Raw material costs show little sign of sharp recovery, while high industry load and rising supply will continue to pressure the market. Although seasonal demand has improved in certain sectors, holiday slowdowns and cautious downstream buying reduce the likelihood of a strong rally. Overall, the PP market is likely to remain weak and rangebound, with no clear peak season surge.