PP Extends Gains Post-Holiday in SE Asia as Market Watches Demand Recovery

Southeast Asia’s polypropylene (PP) markets returned from the holiday period with fresh price increases in both import and domestic segments, largely in line with earlier market expectations. The upward trend has been supported mainly by firm sentiment and tight supply conditions, while demand recovery across the region remains uneven. Compared to the stronger rally seen in the regional PE market, PP has shown relatively milder momentum, with buying interest staying cautious across the polyolefin chain.

Import Prices Reach Over Five-Month Highs

Import PP prices continued to rise in the first week after the holidays, extending the uptrend that began in mid-January. According to market data, the latest increases have pushed prices to their highest levels in more than five months, with some grades crossing key psychological thresholds.

The upper end of homo-PP raffia and injection offers moved above the $900/ton mark on a CIF Southeast Asia basis, while PP block copolymer (PPBC) injection prices approached the high-$900s/ton CIF. Price increases were observed across major suppliers, including Middle Eastern, South Korean, ASEAN, and Chinese origins, with some Chinese offers reported at up to $910/ton CIF, cash.

Sellers maintained firm pricing strategies amid limited spot availability. Some suppliers even delayed fresh quotations, expecting to achieve better netbacks in the near term.

Domestic Markets See Gradual Increases

In Indonesia, a major producer announced consecutive domestic PP price hikes of IDR 80,000–90,000 per ton in its latest price list. This move reinforced the ongoing uptrend in the local market, where homo-PP raffia and injection grades have recorded consistent gains over the past seven weeks.

Thailand also witnessed further domestic price increases, supported by tight supply conditions. However, trading activity remained moderate, as many converters preferred to secure confirmed downstream orders before purchasing additional raw materials.

In Vietnam, domestic PP prices increased by around VND 500,000 per ton following the Tet holiday. Although prices strengthened, overall market participation was still limited, as some players had not fully resumed operations. Buyers with sufficient inventories through April largely continued with need-based purchasing.

Tight Supply and Firm Costs Meet Cautious Demand

Supply fundamentals across the region remain supportive. Import availability is perceived as tight, while upstream cost pressure persists due to firm crude oil futures and rising propylene prices in Asia. Increasing feedstock costs have encouraged sellers to defend higher PP price levels and limit discounts.

On the demand side, recovery has been gradual and uneven. While some downstream sectors reported improved operating rates after the holidays, broad-based restocking has not yet taken place. Many converters continue to rely on pre-holiday inventories and prefer to purchase only as needed.

Market participants highlighted the imbalance between supply tightness and cautious demand. A Thai trader noted that although supply-related developments have driven prices higher, buyers remain focused on securing end-product orders before committing to fresh raw material purchases.

Similarly, a Vietnamese trader indicated resistance at current levels, stating that buyers prefer need-based purchasing as existing inventories are sufficient until the end of April. This suggests that further price increases may face slower acceptance if demand does not strengthen in the coming weeks.

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