[PP Daily Review] Demand Recovery Slow, Polypropylene Market Continues Weakness

1 Today's Summary

①、 Sinopec East China PP decreased by 50. AnT grade fixed at 6950, JiuT grade fixed at 6950, ShangM 800E fixed at 8300, GM1600E fixed at 8000, ZhenM09 decreased by 100, fixed at 7100.

②、 Today, the proportion of domestic polypropylene production affected by shutdowns increased by 0.31% from yesterday to 16.11%. The proportion of daily raffia-grade production decreased by 1.09% from yesterday to 24.16%. The daily production proportion of low melting copolymer decreased by 0.56% from the previous day to 12.05%.

③、 In the period from August 8 to August 14, 2025, the supply-demand balance remains in a state of supply exceeding demand, with the supply-demand gap maintaining a positive value and slightly widening, which has a somewhat increased negative impact on market sentiment. In the next period, the surplus in the supply-demand balance is expected to narrow, likely easing the negative impact on prices.

2 Spot Market Overview

Table 1 Summary of Domestic Polypropylene Prices (Unit: Yuan/Ton)

Based on the East China region, the polypropylene drawn yarn closed at 6,999 yuan/ton today, down 15 yuan/ton from yesterday. The national drawn yarn average price decreased by 20 yuan/ton compared to yesterday, a drop of 0.28%, in line with the morning expectations.

Futures opened lower and moved downward today, with the market currently in a macro information vacuum and fundamentals driving price trends. As prices declined, lower prices stimulated some just-in-time demand orders, prompting traders to actively offer discounts to secure sales channels. However, there has been no significant improvement in downstream orders, with replenishment mainly driven by essential needs, causing the price center to move down passively. As of midday, mainstream prices for wire rod in East China were at 6,900–7,050 yuan/ton.

3 can be translated to English as "the basis between futures and spot prices."

From the perspective of basis, the polypropylene basis in East China today is 13 yuan/ton, an increase of 24 yuan/ton from yesterday; the basis in North China is 17 yuan/ton, a decrease of 3 yuan/ton from yesterday.

4 Production Updates

The capacity utilization rate of polypropylene decreased from 78.54% to 78.41%, a decline of 0.13% compared to yesterday. The oil-based profit increased by 61.71 yuan/ton compared to yesterday, reaching -153.51 yuan/ton.

5 Market sentiment

The current polypropylene market is experiencing sustained high supply pressure, with downstream demand recovering slowly and peak season stocking not yet initiated, resulting in weak price fluctuations and cautious sentiment among industry players.

6 Price Prediction

From the perspective of polypropylene supply, the 900,000-ton unit in Ningbo Daxie is about to be put into operation, leading to expectations of increased supply pressure. Downstream enterprises generally maintain low inventory levels and mostly adopt a procurement strategy based on demand. The extent of demand recovery during the traditional peak season will be a major focus. It is expected that in the short term...Polypropylene MarketFluctuates within the range of 6,930-7,100 yuan/ton.

7 Relevant product information

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