Daily Review: Polypropylene (PP) Granule Market Weakens, Cost-Side Support Strengthens

On September 25th, the average market price of polypropylene granules was 6,823 yuan/ton, a decrease of 23 yuan/ton compared to the previous working day, with a drop of 0.34%. Today, the mainstream market transaction price for polypropylene granule raffia was between 6,800 and 6,950 yuan/ton. The domestic mainstream market prices showed a weak downward trend. In the morning, the futures market was relatively strong and volatile, which boosted the spot market. As the holidays approach, the demand in the terminal market has improved somewhat, but overall demand remains weak, and downstream factories have a lukewarm attitude towards stocking up.

North China Market: On September 25, the PP prices in the Linyi market fluctuated and consolidated, with traders actively reducing prices to clear inventory. Downstream purchasing has slowly resumed, and the market trading is generally moderate. Reference prices: Yulong Petrochemical T30S (fiber) reported at 6740 yuan/ton, Shenhua Ning Coal 1102K (fiber) reported at 6850 yuan/ton, Zhongmei Mengda L5E89 (fiber) has no quotation, Baofeng Energy V30G (homopolymer injection) reported at 6800 yuan/ton, Dushanzi Petrochemical K9928H (high melt co-polymer) reported at 7500 yuan/ton, Shenhua Ning Coal K8003 (co-polymer) reported at 7120 yuan/ton, Dushanzi Petrochemical TF1007 (pipe) reported at 7580 yuan/ton, and Lanzhou Petrochemical RP340R (transparent material) reported at 7600 yuan/ton.

East China Market: On September 25, the Yuyao PP market prices remained relatively stable. With the rise in crude oil prices, the cost support for polypropylene has strengthened. Recently, supply has decreased while demand has increased, leading the market to show signs of recovery. Reference quotations: Zhenhai Refining & Chemical PPH-T03 (fiber grade) is quoted at 7,150 RMB/ton, Hengli Petrochemical L5E89 (fiber grade) at 6,750 RMB/ton, Guoneng Ningxia Coal 1102K (fiber grade) at 6,950 RMB/ton, China Coal Yulin L5E89 (fiber grade) at 6,800 RMB/ton. Ningbo Formosa 5090T (transparent grade) has no current quotation, Donghua Energy S2025 has no current quotation, Shenhua Ningxia Coal 1102K (fiber grade) is quoted at 6,950 RMB/ton, Zhong'an United T03 has no current quotation, and Zhejiang Petrochemical K8009 (copolymer) is quoted at 7,020 RMB/ton.

South China Market: On September 25, the Xiamen PP market saw slight adjustments in quotations. The rise in futures prices boosted the market, but actual market follow-up was weak, leading to concessions in real transactions. Reference prices: Fujian United T30S (fiber) quoted at 6,800 yuan/ton, Fujian United 1100N (homopolymer injection) quoted at 6,850 yuan/ton, Sinochem Quanzhou L5E89 (fiber) quoted at 6,680 yuan/ton (-20), Guangdong Petrochemical L5E89 has no quotation, Gulei Petrochemical PPH-M17 (thin-wall injection) quoted at 6,800 yuan/ton, Zhongjing Petrochemical V30G (homopolymer injection) quoted at 6,780 yuan/ton, Fujian United TM7000H quoted at 7,100 yuan/ton (+10), Hainan Ethylene K8003 (copolymer) has no quotation.

Future Market Forecast: Recently, crude oil prices have risen, strengthening cost-side support. Coupled with the shutdown and maintenance of some production facilities, supply-side pressure has eased. However, the follow-up on downstream demand is limited, and the market trading atmosphere remains stalemated. It is expected that polypropylene market prices will weakly decline on the next working day, with a price drop range of 1-10 yuan/ton.