Southeast Asia Homo-PP Imports Extend Gains for Fifth Week, Demand Still Weak

Southeast Asia’s import homo-PP market continued its upward movement this week, supported by higher upstream costs and tighter availability for selected grades. However, buyer resistance remains strong, preventing the rise in prices from translating into stronger purchasing activity.

The weekly average for the overall homo-PP raffia and injection range increased for the fifth consecutive week, reaching $1,185/ton CIF Southeast Asia, cash—its highest level since mid-June and a two-month high.

Despite the continued price increase, many buyers remain adequately stocked and are unwilling to pursue higher offers.

Higher Costs Support Sellers' Position

Stronger crude oil and propylene costs continued to provide the main support for import PP prices. Rising energy values have strengthened the production cost base, while limited availability of certain grades has allowed suppliers to maintain firm offers.

Geopolitical uncertainty has also contributed to the supportive market environment. However, these factors have mainly helped sellers defend existing price levels rather than generating strong upward momentum, as demand remains below market expectations.

South Korean Material Offers Better Competitiveness

South Korean-origin homo-PP raffia emerged as one of the more competitive options in the import market this week, with offers reported below Chinese material.

This was notable as Chinese suppliers continued to maintain relatively firm pricing despite limited buying interest. The price difference has made origin competitiveness increasingly important for buyers trying to control replacement costs.

The overall homo-PP raffia and injection range this week stood at $1,120-1,250/ton CIF Southeast Asia, cash. The lower end of the range was represented by South Korean offers, while Chinese homo-PP raffia was quoted at approximately $1,150-1,220/ton.

Buyers Continue Need-Based Purchasing

Even after five consecutive weeks of gains, buyers remain cautious about purchasing larger volumes.

A Vietnamese converter reported having sufficient inventory and said fresh purchases would only be considered if homo-PP raffia prices fall to around $1,100/ton CIF or below. Otherwise, the company would rely on domestic material and buy only according to immediate requirements.

Another trader also noted that ongoing market uncertainty is encouraging buyers to continue hand-to-mouth purchasing.

The current market strength is therefore being driven mainly by higher costs and supply-side support rather than improving demand. Although sellers have managed to maintain higher levels so far, continued buyer resistance could make it harder for the market to extend its rally at the same pace.

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