Steady growth in demand for polypropylene products under the background of silver october

Introduction: As of Thursday, the average orders in the polypropylene products industry have increased by 2.28% month-on-month and 2.16% year-on-year. From the sub-industry data, orders in all product industries have risen compared to last week, with an average increase of 2.26%. Currently, it is the traditional peak season for polypropylene product demand, but the recent lack of guidance on raw materials has led to instability in the mindset of some terminal industries, which to some extent affects the replenishment mentality at the terminal, thereby inhibiting the growth of orders in the products industry.

I. Cost Drag: New Orders for Finished Products Mainly Follow Just-in-Demand

Figure 1: Data Trend Chart of the Polypropylene Products Industry

As of Thursday, the average operating rate of the polypropylene downstream industry for the week increased by 0.52 percentage points to 52.37%. The United States has intensified sanctions against Russia, and the ongoing stalemate in the Russia-Ukraine conflict shows signs of further escalation. Coupled with eased market concerns over trade disputes, declining U.S. commercial crude oil inventories, and rising international oil prices, PP futures and spot prices rebounded after a decline. The petrochemical sector remains generally stable, providing limited support on the cost side. The mainstream prices in the polypropylene products industry mostly remain steady with slight adjustments, and a few have dropped by a hundred yuan. On one hand, driven by traditional peak season demand, concentrated promotional activities on e-commerce platforms have led to considerable sales in industries such as food, clothing, and cosmetics. Meanwhile, the autumn harvest of agricultural products has boosted packaging industries like woven bags, BOPP, and CPP. The sharp drop in temperatures in regions such as North China and Northeast China has increased sales of cold-resistant fabrics and automobiles, which in turn boosts demand for PP non-woven fabrics and modified products. On the other hand, new national consumption policies and childcare subsidies have helped expand domestic demand and consumption, positively impacting the terminal industries for polypropylene products, including electronics, digital products, toys, and baby strollers.

2. Product Demand is Improving

From the performance of various terminal industries, the demand for derivative industries of polypropylene products is showing a growth trend, and the monthly production data of downstream industries in 2025 has increased compared to the same period.

In the express delivery industry, from January to August 2025, China's express delivery volume reached 785.5 billion pieces, a year-on-year increase of 19.18%. The monthly average year-on-year increase was higher than last year, with a significant rise of 58.81% in February. This was because logistics were halted during the Chinese New Year in February 2024, but in consideration of consumer demand, the express delivery industry remained operational in February 2025, leading to a substantial year-on-year increase. Looking at future consumption expectations, from September to December, driven by domestic e-commerce promotions and holiday consumption, along with exports of goods such as Yiwu small commodities overseas, end consumer demand is expected to rise. Consequently, express delivery volume is projected to continue growing, thereby driving demand in industries such as polypropylene products, BOPP, CPP, and woven bags.

In the automotive industry, the production and sales of automobiles in China have continued to grow. As of September, China's total automobile production reached 24.303 million units, an increase of 13.24% year-on-year. Since the 18th National Congress, China has adhered to the path of green development, promoting a comprehensive green transformation of economic and social development. Under this premise, new energy vehicles have been vigorously developed through industry innovation and research and development, supported by national policy subsidies. From January to September, sales of new energy vehicles in China reached 10.995 million units, an increase of 32.15% year-on-year. The increase in production and sales in the automotive industry has driven demand for downstream products such as polypropylene modification, capacitor films, and aluminum-plastic films.

From January to September, China's refrigerator and washing machine production increased year-on-year, with refrigerators rising by 1.26% and washing machines by 8.32%. After tariffs were determined between China and the U.S. in August, the production of refrigerators and washing machines in China increased. Meanwhile, during the prior China-U.S. trade interactions, Chinese home appliance companies have been continuously expanding into overseas markets. Currently, based on the existing export foundation, overseas demand continues to rise. Additionally, driven by domestic national subsidy policies, not only refrigerators and washing machines but also more small home appliances, home decoration, and digital products have been included in the national subsidy product list. These products have a positive impact on the polypropylene products industry, particularly in the areas of modification and injection molding.

3. The terminal consumption of finished products may continue to follow up.

Table 1: Data Forecast for Polypropylene Products

Data Source: Longzhong Information

The United States continues to intensify sanctions on Russia while also upgrading sanctions on Venezuela and Iran, leading to heightened market concerns about supply risks. The increased instability in geopolitical situations provides support for oil prices. The temporary maintenance of PP production facilities has increased on the supply side, reducing supply pressure. In the polypropylene products industry, driven by national policies and end-user consumption growth trends, demand may continue to follow up. However, due to limited cost guidance and unstable consumer income, orders in the polypropylene products industry may increase steadily, but compared to previous years, some sectors may not reach past levels. In summary, the demand in various product industries is steadily developing, with the consumption of raw materials remaining basically stable.