[pp daily review] demand slowly recovers, polypropylene market range-bound

1. Today's Summary

The price of Sinopec Southwest Dushanzi Petrochemical TF1007D has increased by 250 to 7,950 yuan/ton.

Today, the domestic polypropylene shutdown impact remains stable at 18.15%. The daily production proportion of raffia increased by 1.17% compared to yesterday, reaching 27.88%. The daily production proportion of low melt copolymer increased by 0.62% compared to yesterday, reaching 7.53%.

The supply-demand balance for this period (August 29, 2025 - September 4, 2025) remains in a state where supply exceeds demand, with the supply-demand gap maintaining a positive value and expanding on a month-on-month basis, negatively affecting market sentiment. In the next period, the supply-demand balance gap will continue to be in surplus, but the gap will narrow, which is still expected to exert some negative pressure on prices.

2. Spot Overview

Table 1 DomesticPolypropylene priceSummary Table (Unit: Yuan/Ton)

Based on the East China region, today's polypropylene raffia is priced at 6,848 yuan/ton, stable compared to yesterday. The national average price for raffia has dropped by 2 yuan/ton from yesterday, a decrease of 0.03%, which is in line with the morning forecast.

In the morning, futures opened lower and fluctuated. Today, the polypropylene market primarily underwent range-bound consolidation. The demand side is slowly recovering, with average enthusiasm for end-user procurement. Traders adjusted their offers to lower levels, with slight concessions on actual transactions. Additionally, the supply pressure from new upstream installations coming online limited price increases. As of midday, the mainstream price for East China raffia was between 6,750 and 6,950 yuan/ton.

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

3. Spot-Futures Basis

From the perspective of basis, the polypropylene basis in East China today is -97 yuan/ton, an increase of 5 yuan/ton compared to yesterday; the basis in North China is 0 yuan/ton, an increase of 4 yuan/ton compared to last week.

Figure 3 Basis Trend in North China (Unit: Yuan/Ton)	Figure 4 Basis Trend in East China (Unit: Yuan/Ton)
Data Source: Longzhong Information	Data Source: Longzhong Information

4. Production Dynamics

The polypropylene capacity utilization rate increased from 76.52% yesterday to 76.56%, a rise of 0.04%. Oil production profit decreased by 21.91 yuan/ton from yesterday, reaching -286.02 yuan/ton.

Figure 5 Domestic Polypropylene Capacity Utilization Trend Chart	Figure 6 Domestic Polypropylene Profit Price Trend Chart (Unit: Yuan/Ton)
Data source: Longzhong Information	Data Source: Longzhong Information

5. Market Sentiment

New production facilities were put into operation in the previous period, increasing supply pressure. Upstream petrochemical companies actively reduced inventory. Although it is entering the peak season, downstream demand is recovering slowly. Intermediaries are relatively cautious, and downstream enterprises are purchasing based on order situations.

6. Price Forecast

The pressure on the supply side is increasing, and the industry chain is moving towards destocking. The process is slow, and the growth rate in the downstream consumer sector is slower than expected, exacerbating the supply-demand contradiction in the market. Factory order increases are limited, and there is insufficient willingness to stockpile. Industry participants hold a cautious attitude towards the future market, making price increases difficult. It is expected that the polypropylene market will fluctuate in the range of 6750-6950 yuan/ton in the short term.

7 ==Related Product Information

Table 2 Summary of Prices for Polypropylene-Related Products (Unit: Yuan/Ton)

Data Source: Longzhong Information