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Polypropylene Market Oscillates in February Amid Cost Support and Holiday Impact

Plastmatch 2026-02-28 17:03:13

In February 2026, the domestic polypropylene market in China was influenced by international situation, the Spring Festival holiday, and fluctuations in futures, showing an overall fluctuating trend. The cost side provided certain support, while weak downstream demand and high inventory accumulation became the main characteristics of the market.

I. This Month's Hot Topics

On the international geopolitical front, escalating U.S.-Iran tensions, coupled with the lack of substantive progress in Russia-Ukraine peace talks, have heightened potential supply risks, providing upward support to polypropylene prices from the cost side.

The holiday factor had a significant impact, with February spanning the Spring Festival holiday, leading to a notable decline in the average operating rate of downstream enterprises, further intensifying the supply and demand contradiction in the market.

Inventory and trading dynamics have shifted, with enterprises accumulating high inventory levels during the holiday period. Reducing prices to clear inventory and recoup cash has become the dominant trading strategy across the industry this month.

II. Market Review for This Month

This month, the polypropylene market trend has been significantly influenced by macro sentiment and futures market volatility. Ahead of the holiday, rising risk-averse sentiment among market participants led to subdued trading activity, coupled with profit-taking in the futures market, resulting in a temporary pullback in prices. On the supply side, producers have heavily pre-sold their output, locking in volumes and keeping overall inventory pressure manageable, thereby providing relatively strong support for homopolymer prices.

Post-holiday macro sentiment has improved, coupled with a temporary rebound in crude oil prices during the Spring Festival, driving futures prices upward after the market reopened. However, delayed resumption of operations by downstream product manufacturers has led to weak spot demand, resulting in a temporary balance between bullish and bearish forces. The market has yet to establish a clear directional trend, and traders are mostly maintaining pre-holiday offer levels and adopting a wait-and-see stance.

III. Next Month's Market Forecast

In March 2026, as downstream enterprises gradually resume operations, restocking demand for raw materials is progressively increasing, and factors supporting polypropylene prices are growing, suggesting the market may experience a short-term upward trend.

For the overall trend from March to May 2026, it is expected that the polypropylene market will showPraise first, then criticize.The Pattern:

In April, downstream production capacity utilization generally stabilizes. Boosted by favorable national policies, downstream export prospects are expected to improve, increasing opportunities for market price increases. However, caution is warranted regarding uncertainties in overseas trade relations, which could suppress domestic demand and thereby constrain upward price movement.

In May, market demand has slightly weakened, and high prices will suppress the purchasing enthusiasm of downstream buyers. It is expected that the market may show a trend of easing at high levels.

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Polypropylene Market Oscillates in February Amid Cost Support and Holiday Impact

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