[PP Daily Review] Weak Demand Performance: Polypropylene Market Declines

1 Today's Summary

Sinopec Central China's PP partial price adjustments: Changling MN70 down by 50, 200A down by 50, Zhonghan 8003/7227/9923 down by 50, 8009 down by 100, Changling F03G down by 30, Jingmen Y26 down by 100, F03D down by 50, Jingmen powder down by 50 yuan/ton.

Today, the domestic polypropylene shutdown impact increased by 2.46% to 20.61%. Today's domestic PP facilities: Dalian Hengli STPP, Jincheng Petrochemical first line, and Zhongjing Petrochemical first phase second line PP facilities are shut down. The daily production share of drawing decreased by 3.96% to 21.92%.

③、 During the period from August 29 to September 4, 2025, the supply-demand balance maintained a pattern of supply exceeding demand. The supply-demand gap remained positive and expanded compared to the previous period, negatively impacting market sentiment. In the next period, the supply-demand balance will continue to be in surplus, but the gap will narrow. It is expected to still exert some bearish influence on prices. 。

2 Spot Overview

Table 1 Domestic Polypropylene Price Summary (Unit: Yuan/ton)

As a benchmark for the East China region, today's polypropylene raffia closed at 6,820 RMB/ton, down 27 RMB/ton from yesterday, in line with the morning forecast. morning Futures opened lower with fluctuations, while spot prices drifted downward within a narrow range. Currently, the number of polypropylene units temporarily halted is increasing, but spot prices are still constrained by inventory pressure, leading producers and traders to actively lower prices to reduce stock. In the future, as more units undergo maintenance and low-priced resources are depleted, the price level is expected to rebound. As of midday, the mainstream price for East China drawing grade polypropylene is between 6,730 and 6,950 yuan per ton. 。

3 Spot-Futures Basis

From the perspective of the basis, the basis in North China today is -14 yuan/ton, down 5 yuan/ton compared to yesterday; the polypropylene basis in East China is -90 yuan/ton, up 6 yuan/ton compared to yesterday.

4 Production Dynamics

Polypropylene Capacity utilization dropped from 76.61% to 74.83%, a decrease of 1.78% compared to yesterday. The oil processing profit increased by 74.53 yuan/ton compared to yesterday, standing at -340.88 yuan/ton. 。

5 Market sentiment

Recently, the polypropylene futures market has shown poor performance, dragging down market sentiment. The spot market prices are oscillating at low levels, and demand remains weak, with downstream factories showing lackluster enthusiasm for purchasing. The reduction in social inventory is slow, and there are significant obstacles to price increases, leading to a cautious attitude among industry participants.

6 Price prediction

Today, several units including Jin Cheng Petrochemical, Hengli Petrochemical, and Zhongjing Petrochemical are undergoing maintenance, causing the shutdown impact to rise to 20.61%. The estimated maintenance losses next week are expected to increase, providing certain support on the supply side. On the demand side, downstream operations have seen some improvement; however, the traditional peak season has not yet been observed, and there is insufficient follow-up on new orders from downstream. Purchasing enthusiasm is low, mainly maintaining just-in-time replenishment. It is expected that the polypropylene market may... Continued weak consolidation.

7 Related Product Information

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

8 Data Calendar

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