Asia PP Daily: Markets weigh regional shifts as Indonesian demand absorbs surplus volumes from Vietnam

16 October 2026

Regional Asian PP markets faced a pivotal crossroads at the close of the week as surging export demand clashed with subdued domestic consumption. While buyers wrestled with stubborn price levels and tightening supply allocations.

CHINA

Local PP offers remained mostly stable on the final trading day of the week, matching previous levels, though select sellers offered concessions of CNY 100/ton on high-end prices. Buying momentum stayed subdued as downstream buyers maintained a cautious wait-and-see stance.

Reflecting the slow market velocity, a local distributor noted that while producers are holding firm—with some even floating potential price hikes—soft sentiment and the weekend approach are clouding momentum. The source added that moving inventory remains an uphill battle given buyer reluctance, making for a challenging landscape in the month-end period.

Export discussions mirrored the quiet domestic trend with offers largely unchanged, while Chinese traders highlighted sluggish overall turnover. Describing the market dilemma, a trader shared that overseas buyers are constantly debating whether prices have peaked. The trader admitted that navigating these inquiries is difficult while producers attempt to defend high offers against hesitant buyers who refuse to rush into purchases.

VIETNAM

A major turning point unfolded in the Vietnamese market as a sudden surge in export demand from Indonesia provided vital relief against sluggish domestic consumption. Leading Vietnamese trading houses successfully closed large volumes of homo-PP yarn at $1,420–1,450/ton CIF Indonesia, swiftly clearing out available October and November allocations.

One major trading house alone reportedly moved over 3,000 tons to Indonesia across the final two sessions of the week. Highlighting the supply tightening, a local trader noted that selling prices to Indonesia have been adjusted up to $1,470/ton CIF, with expectations that the domestic market will eventually feel the spillover effect. Although local converters remain hesitant to match higher costs, the rapid drainage of near-term allocations via exports is expected to reinforce suppliers' defenses against further downward pressure.

INDONESIA

Concluding the week's activity, a major domestic producer rolled out widespread list price increases of IDR 360,000/ton across all grades following a temporary suspension of offers.

In the import sector, attention shifted toward African material after trading approximately 2,000 tons over recent days; the supplier has temporarily halted homo-PP offers at $1,320–1,330/ton CIF Indonesia. Although additional inquiries surfaced, allocations are effectively exhausted, leaving current price discussions open solely for bidding indications ahead of formal offers next week.

Meanwhile, Vietnamese suppliers maintained limited December shipment allocations priced at $1,470–1,480/ton, while sporadic November offers touching $1,500/ton encountered immediate, stern rejection from local market participants.

MALAYSIA

Local domestic PP pricing closed the week on a stable note. Despite firmer regional trends observed in Indonesia, local distributors expressed skepticism regarding any meaningful spillover into Malaysia.

Market sources emphasized that weak overall sentiment and tepid end-product demand are keeping buyers on edge, with converters declining to commit despite tightening supply fundamentals.

Adopting a conservative posture, a market participant explained that operations remain on hold while waiting for producers to clear pending backlogs and introduce fresh offers, noting that new allocations will only be secured once supplies officially become available.

Written by: Farid Muzaffar