This week's South Asian PP raffia assessment is down $95 per tonne, taking the polymer to $1,130 per tonne, from $1,225 a week earlier. The fall is the resin catching up with the sharp softening in Brent crude over the previous week, and it sits squarely inside the one-to-four-week pass-through window between crude and PP raffia that we track on our price page.
What moved crude
The driver sits in the Gulf. As transit through the Strait of Hormuz has normalised and the United States and Iran have stepped back from open conflict, the war premium that had carried Brent above $120 a barrel at the height of the disruption has drained out of the market. Persian Gulf barrels that were effectively stranded are flowing again, force majeure declarations have been lifted, and crude has fallen back into the mid $70s.
For a polymer priced off naphtha and propylene, a move of that size in crude does not stay upstream for long. Last week's slide in oil is what this week's cut in PP raffia reflects.
Why buyers should hold a caveat
The de-escalation is real, but it is not settled. Reporting through the past week has shown continued strikes around the strait, and the terms governing transit, including whether Iran introduces fees once the current 60-day waiver expires, remain unresolved. A polymer market that has just priced out a large risk premium is the kind of market that can reprice quickly if the security picture turns again.
So the softer number is welcome for anyone buying FIBCs, bulk bags or liners, and it should feed into gentler bag quotes over the coming weeks as converters work through cheaper resin. Whether it holds is a separate question, and one worth watching week to week rather than assuming.
What this means for your next quote
If you have an enquiry open, this is a reasonable moment to ask where a supplier's quote sits against the current polymer level, now that the raw material has moved in your favour. If your requirement is further out, the fragility above is the reason to watch the weekly print rather than treat today's dip as a floor.
We publish the PP raffia assessment every Wednesday to Thursday, with Brent crude alongside it back to February 2020, so you can see both the current move and the trend behind it. Check this week's price and subscribe to the weekly newsletter here to get it in your inbox.
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Disclaimer: All prices shown on this page are indicative only and are sourced from Platts (S&P Global Commodity Insights) weekly assessments for the South Asian sub-continent. India Pack does not trade in or arrange supply of polypropylene, and accepts no responsibility for procuring PP at any price listed here. This information is provided solely for market awareness and general reference. It does not constitute a trade offer, privileged or confidential market intelligence, or any form of professional, commercial, or procurement advice. Actual transaction prices may differ materially from the indicative figures shown.
This article was produced with the help of AI and may contain errors. AI can make mistakes, so please treat the commentary as general market awareness and check any figure independently before acting on it.