Pp daily review: Cost Factors Drive Price Trends; Polypropylene Prices Continue to Rise

1. Today’s Summary

①. Sinopec Central China PP prices have been increased: filament, BOPP film, injection molding, and fiber grades are up by 200, thin-walled grades are up by 150-200, and Sino-Korean copolymers are up by 100-200.

②, Today, the domestic polypropylene plant shutdowns' impact remains the same as yesterday at 21.17%. The daily production proportion of filament increased by 2.73% from yesterday to 31.26%, and the daily production proportion of low-melt copolymer increased by 1.32% from yesterday to 7.79%.

③、 This period (20260213–0226)   Supply remains greater than demand.The supply-demand gap is positive and remains at a high level, exerting downward pressure on market prices. In the next period, market supply-demand conditions will improve rapidly, yet an oversupply situation will persist.Polypropylene MarketPrice still acts as a constraint 。

2 Spot Market Overview

Data source: Longzhong Information

Taking the East China region as the benchmark, the price of polypropylene for spinning today is 7306.Yuan/ton, up by 184 Yuan/ton from yesterday; the national average price for wire-drawing steel is up by 208 Yuan/ton from yesterday, in line with the morning’s expectations.

Today's futures market showed a high-level retreat followed by fluctuation In the morning, the market quotes continued to rise, but the increase narrowed slightly. The situation in the Middle East remains the dominant factor affecting the market, with ongoing concerns. Traders are following the price increases, and factories are meeting their essential needs. It is expected that the market will continue to probe higher in the near term. As of noon, the mainstream prices for drawing wire in East China ranged from 7200 to 7350 yuan per ton.

Figure 1 Domestic Polypropylene Price Trend (Unit: Yuan/Ton)	Figure 2: Domestic Polypropylene Prices by Region (Unit: CNY/ton)
Data source: Longzhong Information	Data source: Longzhong Information

3. Basis (Cash-Futures Basis)

From the basis perspective, today's polypropylene basis in East China is -110 yuan/ton, a decrease of 102 yuan/ton from yesterday; the basis in North China is -125 yuan/ton, a decrease of 106 yuan/ton from yesterday.

Figure 3 Basis Trend in North China (Unit: Yuan/ton)	Figure 4: Basis Trend in East China Region (Unit: CNY/ton)
Data source: Longzhong Information	Data Source: Longzhong Information

4 Production Dynamics

Polypropylene capacity utilization rate fell by 0.54% from yesterday to 73.61%. PP profit decreased by RMB 52.56/ton from yesterday to -RMB 988.88/ton.

Figure 5: Trend Chart of Domestic Polypropylene Capacity Utilization Rate	Figure 6: Domestic Polypropylene Profit and Price Trend Chart (Unit: RMB/ton)
Data source: LSR News	Data source: LSR News

5. Market Sentiment

Geopolitical crises continue, crude oil prices rise, costs remain high, and producers arbitrarily increase their ex-factory prices; meanwhile, intermediaries adjust prices according to market conditions, driving market prices higher continuously; market sentiment remains positive.Downstream factories are gradually resuming operations. Demand for essential purchases, transaction volume improves.

6. Price Forecasting

Under the geopolitical crisis, crude oil prices surged rapidly, driving up market prices. Speculative sentiment in the market eased slightly, and the increase in spot prices narrowed marginally. Downstream manufacturing enterprises are caught in a “buy-on-rising-prices” scenario, forcing (demand-driven) traders to procure materials at elevated prices. The polypropylene market is expected to trend firm tomorrow, with cost factors dominating spot price movements. The East China homopolymer PP fiber-grade price is projected to range between RMB 7,350–7,450 per metric ton.Yuan/ton.

7 Related Product Information

Table 2: Summary of Polypropylene-Related Product Prices (Unit: RMB/ton)

Data source: LMD Information Group