Southeast Asian Homo-PP Import Prices Return to Pandemic-Era Highs

Southeast Asia’s imported polypropylene market maintained its strong upward momentum throughout October, with both homo-PP and PP block copolymer (PPBC) recording significant price increases. The rally, which has continued for around three and a half months, has pushed homo-PP raffia and injection prices back to levels last recorded during the pandemic. PPBC injection prices have also recovered to their mid-April 2026 peak.

The sustained gains have been supported by rising energy and feedstock costs, expensive freight, and tighter supply. Chinese suppliers have been particularly aggressive in raising their offers, while sellers from the Middle East and Southeast Asia have also increased prices in response to higher production costs. However, growing resistance from buyers is raising questions about how long the rally can continue without further cost support or tighter supply.

Homo-PP Prices Reach Their Highest Level Since March 2021

Import prices of homo-PP raffia and injection grades have climbed by approximately 40% from their multi-month lows in early July, with the market repeatedly setting new highs during the rally.

The latest increases lifted the weekly average of the import price range to its highest point since late March 2021, taking prices back to pandemic-era levels. Sellers continued to push for higher prices despite increasingly cautious purchasing activity and limited buying interest.

PPBC Injection Recovers to Its April Peak

Import PPBC injection prices have also advanced considerably, gaining more than 36% since the upward trend began around mid-July.

The weekly average has now returned to its mid-April 2026 peak. Despite these higher levels, downstream demand has not shown a comparable improvement. Middle Eastern material remained at the upper end of the PPBC injection price range, while Chinese offers were also reported at elevated levels.

Chinese Suppliers Lead the Latest Price Increases

Chinese PP suppliers have played a major role in driving Southeast Asian import prices higher, with offers rising sharply week after week during October. These increases continued even as buyers showed greater resistance, indicating that suppliers were placing more emphasis on protecting margins and recovering higher costs than on securing additional sales volumes.

The firm pricing stance reflects developments in China's domestic market. Higher crude oil prices and Dalian PP futures, along with sharply rising propylene and propane costs, have increased pressure on producers. At the same time, an estimated 24% of China's PP capacity remained offline, further limiting available supply.

With production costs climbing and supply availability restricted, Chinese producers had little incentive to reduce export offers. As a result, higher costs were increasingly passed on to overseas buyers.

Chinese material has also become less competitive against supplies from other origins. Its traditional price advantage in Southeast Asia has narrowed, with some offers even carrying a premium. This has reduced buyers' ability to rely on Chinese cargoes as a cheaper alternative to Middle Eastern and regional supplies.

Higher Energy and Feedstock Costs Support the Rally

The broader energy and feedstock market continued to provide significant support to PP prices across Southeast Asia.

Brent crude futures reached a more than four-year high on a weekly average basis in late October. Asian propane and propylene prices also strengthened, while spot propylene prices on a CFR Southeast Asia basis climbed to around a six-month high. CFR China propylene prices moved into unprecedented territory, adding further pressure to PP production costs.

Chinese producers faced particularly strong cost increases. Rising propylene prices lifted polymerization expenses, while expensive propane further squeezed the economics of propane-based production. Combined with higher crude oil prices and stronger Dalian futures, these factors reinforced sellers' reluctance to reduce offers.

Middle Eastern and Southeast Asian producers were also facing higher production costs, giving suppliers across the region additional reasons to maintain firm pricing.

Buyer Resistance Grows as Demand Remains Weak

Despite the strong price increases, consumption has remained a major challenge for the market. Buyers across Southeast Asia increasingly consider current offers too expensive and are limiting purchases to immediate requirements rather than building inventories.

A Vietnamese trader said Chinese offers had increased by around $20–30/ton from the previous week. However, given the high price levels, the trader's company preferred to purchase only when needed.

Similar caution was reported in Thailand, where buyers were keeping stock levels low and seeking further discounts. Producers were also running their plants at reduced rates amid subdued demand and expensive raw materials. One Thai trader estimated operating rates at approximately 60%.

Overall, Southeast Asia's PP market continues to receive strong support from higher feedstock costs and restricted supply. However, weak consumption and growing buyer resistance could limit further increases unless cost pressures remain elevated or supply tightens further.

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