The mask demand raises Chinese polypropylene prices

China’s domestic polypropylene (PP) prices have rallied since end-March, driven by spiking demand for downstream face masks amid the coronavirus pandemic, while supply of some grades has tightened partly due to scheduled plant turnarounds.

The main driver for the higher propylene prices is the downstream PP market.

With a growing number of people across the world wearing face masks as protection against infection from the flu-like virus, demand for PP fibres was consequently boosted.

PP fibres with a melt index of 35-40 make up the outer layer of face masks, which typically comprise two layers of fibres and middle melt-blown material, according to experts.

Shandong propylene and east China prompt propylene jumped Yuan 1,400/mt and Yuan 2,500/mt on the week at Yuan 6,900/mt and Yuan 7,500/mt ex-tanks Tuesday, respectively.

But other propylene downstream markets are not convinced that demand has flipped to the bullish side. As such, this recent surge in PP prices have lifted sentiment in the methanol market, which has in the past one year been depressed by ample supply and low prices, trade sources said.