China’s Import Homo-PP Prices Ease from 8-Month Highs

China's import homo-PP raffia and injection prices saw slight drops by $10/ton in the week ending March 21, marking the first decrease in two months. While some suppliers held firm citing tight Middle Eastern supply, others reduced prices due to weaker costs and sluggish demand.

Weaker crude oil and propylene prices, which hit a 3.5-month low of $835/ton, further pressured PP prices. Despite minor seasonal demand upticks, buying remained cautious with factories restocking only for immediate needs.

Domestically, prices for homo-PP raffia and injection fell by $7-28/ton during the week ending March 15, reaching their lowest level since July 2023. Import prices continued to carry a $29/ton premium over local materials, the widest gap in nearly four years.

Adding to the pressure, large capacity expansions are set to exacerbate oversupply concerns. ExxonMobil (Huizhou) PC is expected to launch two PP plants with a combined 850,000 tons/year capacity by the end of March, contributing to the anticipated 3.55 million tons/year increase in 2025.