Sufficient supply of propylene plummeted PP prices in Southeast Asia fell

Southeast Asia's polypropylene market has been hampered by a sharp decline in raw propylene market since the end of October, with sufficient supply and weak downstream demand in the region.

The weakening price of China as a major market further weakened market confidence in the region, with new orders from South Korea flooding China's import market.

ICIS data show that spot prices of flat yarn grade PP fell by 4.71% on November 16 compared with the end of October, and CFR (cost plus freight) average price was $1215/ton.

A Cambodian worker is preparing rice bags and polypropylene for hemp bags

. Market sentiment has been hit by the sharp fall in the price of propylene as raw material. In just five weeks, propylene prices fell from their highest level this year to their lowest level, shocking downstream PP market participants.

Some PP suppliers reduced their quotations in order to reduce inventories due to concerns that spot prices would be under pressure and affected by the propylene market. Market participants are very nervous. China's polypropylene futures have been unstable, crude oil prices have been weakening, and regional currencies are still very weak against the dollar - all these factors have affected confidence levels. A Southeast Asian supplier said. Market participants expect upstream prices to continue to decline, and processors in Asia are becoming more cautious in making new purchases. In addition, most companies previously purchased large quantities of goods for October shipments --- goods needed at the end of the year in advance to ensure that the goods arrived within the year.

Purchases of goods originating in the Middle East and India, which have been shipped for a long time and are taxable, are particularly weak.

Demand is expected to decline further in the coming weeks as seasonal off-season approaches the end of the year and buyers expect inventory to continue to decline towards the end of the year. By contrast, supply seems to be adequate, and goods from Vietnamese and Korean start-ups will continue to pour into the market in the near future.