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Policy Support and Peak Demand Season May Boost Operating Rates in the Modified Polypropylene (PP) Industry

Longzhong 2025-08-30 15:19:15

[Introduction] National consumption subsidies made a strong comeback in August. Authoritative sources indicate that the third batch of 69 billion yuan in ultra-long-term special government bond consumption subsidy funds has been fully allocated, and the online and offline application channels have gradually reopened since August. This marks the official release of the largest consumption dividend in the second half of 2025. 。

As of August 2025, the penetration rate of new energy vehicles in China has exceeded 50%. In terms of production, from January to July 2025, the output reached 7.998 million units, an increase of 2.159 million units compared to the same period last year, representing a year-on-year growth of 36.98%. The national subsidy policy has facilitated this growth.The three core mechanisms of directly reducing purchase costs, guiding industrial upgrading, and creating consumer expectations successfully stimulated market demand, driving the early rapid growth of China's new energy vehicle sales.

In terms of household appliances, the total production of the four major household appliances in July was 416.457 million units, a decrease of 14.55% month-on-month, and an increase of 3.91% compared to the same period from January to July 2024. By the end of 2025, the national subsidy policy is scheduled to fully conclude on December 31st, primarily affecting sectors such as home appliances, digital products, automobiles, and renewable energy. It is expected that after September, with the arrival of the peak demand season and consumers seizing the remaining window to enjoy the subsidy benefits,The demand for household appliances shows a significant upward trend.

According to the latest data, the operating rate of the domestic modified polypropylene industry has increased by 0.25% month-on-month to 60.48%. Recently, with the arrival of the third batch of national subsidy funds and the peak demand season of September and October, there is a possibility of an increase in demand for automobiles and home appliances, which slightly supports the modified polypropylene industry. It is expected that the industry's operating rate will show an upward trend.

This subsidy covers 15 major categories of consumer goods, including home appliances, digital products, and automobiles, with a maximum subsidy of up to 2,000 yuan per item. The comprehensive benefit for car replacement can reach as high as 50,000 yuan. From August 28 to December 31, as modified polypropylene is an important material for automobiles and home appliances, it is expected that, supported by the policy and peak demand season, the demand for modified polypropylene will show an upward trend in the fourth quarter.

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Policy Support and Peak Demand Season May Boost Operating Rates in the Modified Polypropylene (PP) Industry

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