Commodity resin markets remained weak last week, with polypropylene (PP), polystyrene (PS), and ABS each falling by $10–20 per metric ton. As China enters the National Day and Mid-Autumn Festival holidays, market conditions are unlikely to improve, putting operational pressure on suppliers including Formosa Plastics, Grand Pacific Petrochemical, and Taita Chemical. The price declines diverge from recent crude oil gains, highlighting weak demand in the key Chinese market.
Market divergence from crude oil
Despite crude oil futures rising to near two-month highs on September 26—supported by Ukrainian attacks on Russian oil infrastructure and potential EU/US sanctions—commodity resin prices moved in the opposite direction last week. The disconnect underscores that resin pricing is being driven by demand-side factors rather than feedstock costs.
China demand weakness
In the Chinese market, approaching month-end and the upcoming National Day and Mid-Autumn holidays, suppliers reported a lack of downstream restocking activity. Actual transactions were thin, and with insufficient raw material cost support, bearish sentiment prevailed. Suppliers offered price concessions to stimulate sales.
Price movements by resin type
Polypropylene (PP), used in medical devices, fell by $10/mt. ABS, used in home appliances and automotive interiors, dropped by $20/mt. Polystyrene (PS), used in beach shoes and appliance packaging film, declined by $10/mt. Among polyethylene (PE) grades, LLDPE (agricultural film) and HDPE (plastic bags) held steady, while LDPE (general plastic products) slipped by $5/mt.
What buyers should watch
Importers and distributors should monitor post-holiday restocking activity in China, which could signal a price floor. The current weakness may present short-term buying opportunities, but persistent demand softness suggests cautious inventory management. Any sustained recovery will depend on improved end-user orders in appliances, packaging, and automotive sectors.
Source: Read the original report | Published: September 29, 2025