PP Weekly Review (2025-05-19 To 2025-05-23)

PP Weekly Review (2025-05-19 To 2025-05-23)

This week's focus

This week, the domestic polypropylene market in China has been highly changeable. In terms of production, output this week reached 751,300 tons, an increase of 0.27 million tons (up 0.36%) from last week, and a year-on-year increase of 127,200 tons (up 20.38%). Installation losses amounted to 221,680 tons, down 0.28% week-on-week. Inventories, including commercial and producers' inventories, fell by -4.61%, -4.63%, respectively, on a weekly basis. As of May 21, the sample inventory of powder mills was 33,900 tons, down 13.30% year-on-year. Market prices fell slightly, with the national average wire-drawing price at 7,234 yuan/ton, down 48 yuan/ton from last week (a drop of 0.66%). In terms of capacity utilization, the weekly average capacity utilization rate of powder enterprises was 32.48%, up 0.49% year-on-year. From the perspective of supply, demand and cost, it is projected that the supply side will see an increase in output, demand will recover slowly, oil-based costs will rise, and PDH costs will ease. In the short term, the market is expected to remain weak, while in the medium and long term, it may retreat. Next week, supply is likely to rise steadily, and the market is expected to experience a weak downward shock. The East China mainstream price is projected to be in the range of 6,950-7,050 yuan/ton.

This week's market analysis

This week, the polypropylene market experienced a slight downturn, with weak end-demand exerting pressure on prices. Regarding production and sales dynamics, China's domestic polypropylene output reached 751,300 tons, an increase of 0.27 million tons (up 0.36%) from last week. Compared to the same period last year, there was an increase of 127,200 tons (up 20.38%), while commercial inventories fell by 4.61% year-on-year. PP plant losses totaled 221,680 tons, representing a 0.28% decline from the previous year.

China's polypropylene powder market fluctuated sideways, with East China remaining flat and Shandong witnessing a decline of 40 yuan/ton (down 0.70%). This week, the weekly average capacity utilization rate of powder enterprises stood at 32.48%, up 0.49% from the previous week. Production reached 55,000 tons, a 1.48% increase from the preceding week. PP powder plant shutdown capacity amounted to 4.95 million tons/year, with maintenance losses down 1.19% week-on-week and inventory decreasing by 13.30%. The operating rate of the plastic weaving industry rose by 0.4% to 45.7%. The national average wire-drawing price was 7,234 yuan/ton, a decrease of 48 yuan/ton from last week (down 0.66%).

The market supply is anticipated to increase, while demand recovery is sluggish. In the short term, the spot market is expected to remain weak, and in the medium and long term, a retreat is likely. Next week, the market is forecast to experience a weak downward shock, with the East China mainstream price projected to be in the range of 6,950-7,050 yuan/ton. Attention should be paid to new capacity and inventory replenishment.

Market influencing factors

This week, the influencing factors of the PP material market are intricate. On the supply side, PP plant losses totaled 221,680 tons, a week-on-week decrease of 0.28%. New capacity is scheduled to come onstream, plant restarts, and the introduction of new materials are expected to lead to a steady increase in supply, intensifying pressure. Although the shutdown of Hengli Petrochemical plant provides some support, the concentration of capacity expansion in the second quarter still exerts significant pressure. On the demand side, there is no remarkable increase in exports, downstream demand recovers slowly, and the terminal market enters a seasonal off-peak period. Most enterprises are focused on inventory digestion, with limited enthusiasm for stockpiling and thus restricted demand release. On the cost front, raw material propylene prices are subject to minor fluctuations due to demand suppression. Tariff easing has a limited impact on boosting downstream demand and market sentiment. Overall, the market is expected to experience a weak downward shock, with the East China mainstream price range projected at 6,950-7,050 yuan/ton. Earlier price hikes have prompted merchants to replenish stocks, resulting in tight spot circulation and a market characterized by a game situation.

Next week's market forecast

On the supply side, previously maintained equipment is expected to restart, with fewer new maintenance cases. New capacity is scheduled to be commissioned, leading to a steady increase in supply and rising pressure. On the demand side, downstream demand recovery is slow, with most enterprises focusing on inventory digestion and limited enthusiasm for stockpiling. The operating rate of some industries has slightly increased, with changes observed in raw material inventory for plastic weaving and other sectors. On the cost front, oil-based costs are rising, with oil prices anticipated to increase next week. In the short term, the cost side of polypropylene is expected to show differentiation. Raw material propylene prices are subject to minor fluctuations due to demand suppression, and tariff easing is expected to have a limited impact on the market.

Considering all factors, the polypropylene market is expected to experience a weak downward shock next week. In the short term, the spot market is likely to remain weak. Currently, East China wire-drawing mainstream prices are hovering around 7,150-7,300 yuan/ton, and next week's East China mainstream price is projected to be in the range of 6,950-7,050 yuan/ton. In the medium and long term, the intensification of the supply-demand contradiction poses a risk of a polypropylene market retreat. The market should closely monitor new capacity and downstream inventory replenishment.

[Market pressure period | YINSU flame retardant helps PP products break through the red sea of competition]

This week, the polypropylene market is characterized by prominent supply-demand contradictions, with supply increments superimposed on weak demand, resulting in a weak price fluctuation. Faced with the dual challenges of cost pressure and environmental upgrading, how to break through in the homogenized competition? YINSU Flame Retardant has launched a series of PP flame retardants (PPV0/PPV2) - UL94 V-0/V-2 grade flame retardants with very low additive amounts, halogen-free formulations compatible with recycled materials, resistant to precipitation and migration, and capable of maintaining the mechanical properties of PP substrates. Designed for thin-walled products, appliance housings, and other demanding scenarios, these flame retardants are suitable for both new PP materials and recycled materials. They assist in meeting stringent flame retardant standards at a lower cost and in capturing the technological high ground in the fluctuating market.