PP Daily Review: Downstream Product Companies Profit Pressure, Polypropylene Price Fluctuates Stably

1. Today's Summary

①. Sinopec Central China prices have been reduced: filament prices have been lowered by 100-110 to 8650-8700, injection molding prices have been reduced by 60-110, and Sino-Korean NS06 has dropped to 11000; PetroChina Southwest PP prices have been increased: ternary film prices have been raised by 300; pipe and transparent material prices have been raised by 200.

②. Today, the impact of domestic polypropylene plant shutdowns decreased by 0.31% to 22.31% compared to yesterday, the daily production ratio of fiber grade polypropylene decreased by 0.4% to 23.11%, and the daily production ratio of low melt copolymer polypropylene increased by 1.73% to 11.51%.

③、 Issue (20260) 0306 -03 12)   Supply of polypropylene remains slightly higher than demand in this period. However, the positive supply-demand gap has rapidly narrowed toward the equilibrium point, providing some support to market prices. In the next period, the market will shift to a supply deficit, and the gap turning from positive to negative will continue to bolster price trends.

2. Spot Market Overview

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

Data Source: Longzhong Information

Based on the East China region, today’s East China polypropylene raffia grade closed at RMB 8,669 per ton, down RMB 104 per ton from yesterday; the national average price for raffia grade declined RMB 83 per ton from yesterday, consistent with this morning’s expectations.

Futures prices declined during today's trading session amid market volatility, as geopolitical risk premiums retreated and international crude oil prices softened. Market participants adjusted their offers downward in line with the market trend, leading to a pullback from recent highs, with most morning offers down by RMB 50–250 per ton. Downstream processors, facing squeezed margins, largely maintained a just-in-time purchasing strategy. As of the midday close, mainstream prices for polypropylene raffia in East China stood at RMB 8,600–8,800 per ton.

Figure 1 Domestic Polypropylene Price Trend (Unit: RMB/ton)	Figure 2: Domestic Polypropylene Price Trend Chart by Region (Unit: RMB/ton)
Data source: Longzhong Information	Data source: LSR News

3. Basis (Spot-Futures Basis)

From the basis perspective, today’s polypropylene basis in the East China region stands at RMB 21/ton, an increase of RMB 106/ton from yesterday. yuan/ton; the basis in North China is -61 yuan/ton, up 6 yuan/ton from yesterday.

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

4. Production Dynamics

Polypropylene capacity utilization was 71.33%, up 0.53% from yesterday. PP profit increased by 609.58 yuan/ton to -821.74 yuan/ton compared to last week.

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

5 Market sentiment

In the first half of the year, with new production capacity in a vacuum period, supply has contracted, and spot prices have remained high. 3 September is traditionally a peak consumption season, yet Downstream resistance to high prices is intensifying. The follow-up momentum of terminal demand is insufficient, polypropylene The market remains in a high-range fluctuation.

6 Price Forecast

Geopolitical disruptions continue to push up costs, with international oil prices maintaining high volatility, significant fluctuations in futures, and tight spot market supply. Downstream cost transmission is not smooth, and procurement pressure is increasing, leading to a noticeable rise in subsequent raw material procurement pressure.The short-term market is expected to continue its upward trend before exhausting the previous gains. Wire rod prices in East China are expected to… 8650-8800 Yuan / Ton.

7 Relevant Product Information

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

Data Source: Longzhong Information

8 Data Calendar

Table 3 Domestic Polypropylene Data Overview (Unit: 10,000 tons)

Data source: Longzhong Information