An Indonesian major extended domestic price hikes for a second consecutive session, with polypropylene grades leading the latest round as tightening regional supply and soaring propylene costs strengthened sellers' leverage. The producer took a more cautious approach to polyethylene.
A Vietnamese PP major extended domestic price increases for a second consecutive round, supported by reduced operating rates and stronger regional prices. Converters remained reluctant to buy at elevated levels, with sufficient inventories and weak downstream orders limiting the producer's ability to convert higher offers into sales.
Export demand provided an outlet, with Vietnamese homo-PP reportedly concluded at competitive levels in Indonesia, helping suppliers clear volumes and defend domestic prices. Local traders kept spot offers well below the producer's latest quotations.
In China, propylene in the Shandong market rose 2.48% to 10,550 yuan/ton by October 10, up 63.06% year on year, according to Sublime China Information data. East China LDPE rose 1.78% to 10,000 yuan/ton.
The rally is colliding with weak downstream demand, as converters struggle to pass higher resin costs to end-product customers. Growing resistance to elevated offers has prompted some manufacturers to consider production cuts.
