Polypropylene Downstream Industries Show Divergent Trends, Peak Season Expectations Brighten Market Outlook

Lead-inAs a core general-purpose plastic supporting the development of China’s chemical and manufacturing industries, the demand for polypropylene is closely linked to the operating trends of downstream segments such as woven plastics, BOPP, and plastic products. In the second half of 2025, due to seasonal fluctuations in end-user industries and changes in the market environment, downstream demand for polypropylene shows a differentiated recovery trend. The woven plastics industry is beginning to show signs of improvement, driven by the recovery of the construction and agricultural sectors. The BOPP industry, however, remains cautious in its demand due to cost pressures, while the output of plastic products continues to grow year-on-year, demonstrating overall resilience.

1. Plastic weaving industry: demand slightly rebounds, expectations for a strong peak season in September and October intensify.

In August 2025, the woven plastic industry has shown signs of stabilizing operations and improving demand. From the production side, in August 2025, the average operating rate of sample woven plastic enterprises in China reached 41.70%, a slight month-on-month increase of 0.12 percentage points. With the acceleration of construction project resumptions and the key fertilization period in agricultural production, the order demand for core woven plastic products such as fertilizer bags and cement bags has slightly improved, directly boosting the production enthusiasm of woven plastic enterprises and helping the industry gradually overcome the previously sluggish low operating levels typical of the off-season. From the order side, in August 2025, the average order backlog days of 50 sample woven plastic enterprises was 6.89 days, a month-on-month decrease of 3.41%, but with significant differentiation among enterprises. According to research by Longzhong Information, medium and large woven plastic enterprises mostly have order backlogs concentrated between 8-10 days, while small enterprises show relatively weaker order performance. Overall, the market is seeing a narrow incremental trend in new orders.

Looking ahead to September, the boost effect of the traditional peak consumption season of "Golden September and Silver October" will gradually materialize. With the full resumption of work in the construction industry and the further release of fertilizer procurement demand before the autumn harvest in agriculture, the demand for fertilizer bags and cement bags is expected to experience a phased rebound, and terminal consumption may enter a slow upward trajectory.

2. BOPP Industry: Costs Weigh on Price Adjustment, Downstream Demand Remains Cautious

In August 2025, the BOPP market experienced a price correction and weak demand due to fluctuations in costs and a wait-and-see attitude on the demand side, temporarily suppressing the boost to polypropylene demand. In terms of pricing, the average BOPP market price in August declined by 1.16% compared to the previous month. As of August 29th, mainstream quotations for thick gloss films in the East China market remained stable at 8,100–8,300 yuan/ton (flat month-on-month). The core driver of the price correction was insufficient cost-side support.International crude oilPrices continue to decline, transmitting through the polypropylene industry chain and leading to a continuous drop in PP futures prices, with the spot market adjusting downward accordingly. On the demand side, overall inquiry intentions from traders are not strong; downstream enterprises mostly adopt a low-price following strategy, making only small-volume purchases when prices meet their psychological expectations to satisfy short-term production needs and avoid the risk of stockpiling.

3. Plastic Products Output: Increased Year-on-Year in July, Highlighting Overall Demand Resilience

2024-2025 Monthly Output Comparison Chart of Plastic Products in China (10,000 tons)

Data source: Longzhong Information

According to Longzhong Information, the national production of plastic products reached 6.688 million tons in July 2025, a year-on-year increase of 1.7%. From a cumulative perspective, the production of plastic products from January to July totaled 45.452 million tons, with a cumulative growth of 4.3%. The rigid demand for daily plastic products in residents' daily lives continues to exist. In July, the construction and agriculture industries gradually entered a recovery phase, driving an increase in the production of related plastic products and jointly promoting the year-on-year growth of monthly output. The overall growth trend of the plastic products industry indicates that downstream demand for polypropylene shows "structural resilience." If end-consumer demand continues to improve, the production of plastic products is expected to maintain growth.

4. Summary and Outlook

Overall, in the early part of the second half of 2025, downstream demand for polypropylene is expected to show a pattern of differentiated recovery and underlying resilience. The plastic weaving industry is likely to stabilize first, supported by the recovery in construction and agriculture. The BOPP industry remains cautious due to cost pressures, but rigid demand persists. The year-on-year growth in plastic products output provides a solid foundation. Looking ahead to the peak consumption season in September and October, further improvement in polypropylene demand is anticipated.