Daily Review: Polypropylene Pellets Prices Rise Slightly Amid Firm Producer Offers

On March 12th, the average market price of polypropylene granules was 8,584 yuan/ton, an increase of 460 yuan/ton from the previous working day, with a growth rate of 5.66%. Today, the mainstream market transaction price of polypropylene granules for fiber is between 8,300-8,600 yuan/ton. The domestic mainstream market prices have shown a slight increase. The rise in international crude oil prices has strengthened the cost support, and the upstream production enterprises are gradually increasing their preventive load reduction, which supports the rise in market prices. The downstream manufacturers are mainly making purchases based on rigid demand, with a strong atmosphere of waiting and watching in the market.

North China Market: On March 12, PP prices in the Linyi market rose significantly, driven by a futures market limit-up, which pushed spot market quotations higher. Market sentiment was largely cautious, with actual transactions subject to negotiation. In Shandong, the mainstream ex-works prices (including tax) were as follows: raffia grade PP at RMB 8,400–8,800/ton, injection molding grade at RMB 8,550–8,600/ton, and fiber grade at RMB 9,000–9,200/ton.

East China Market: On March 12, polypropylene (PP) prices in Yuyao rose, driven by heightened market sentiment and stronger futures trading, prompting traders to lock in profits, thereby lifting spot prices. In the East China region, the mainstream transaction price for homopolymer (raffia-grade) PP stood at RMB 8,600–8,750 per ton (tax-inclusive, ex-factory); for injection-molding-grade PP, the mainstream transaction price was RMB 8,650–8,750 per ton (tax-inclusive, ex-factory); and for fiber-grade PP, the mainstream transaction price ranged from RMB 8,700–8,800 per ton (tax-inclusive, ex-factory).

South China market: On March 12, Xiamen PP prices rose, with the futures market hitting a limit up, showing a clear upward trend in the market, and spot transactions offering discounts. The main selling prices for South China region's transparent material ranged from 8,700 to 9,000 yuan/ton, tax included, while the main selling prices for injection molding material ranged from 8,600 to 9,300 yuan/ton, tax included, and the main selling prices for fiber material ranged from 9,300 to 9,600 yuan/ton, tax included.

Market Forecast: The futures market showed a wide upward trend in the morning, which is beneficial to the spot market. Most downstream manufacturers are purchasing based on rigid demand, and they are cautious about entering the market. Affected by the supply of crude oil on the cost side, the prices quoted by producers are firm. It is expected that in the next working day, the price of polypropylene will continue to rise, with a fluctuation range of 50-200 yuan/ton.