October 1st, according to news,
According to Spotcom data, entering September, the PP market in China first surged and then stabilized, with overall prices for various grades of products increasing. As of September 30, the benchmark price for PP fiber was reported at 9,933.33 CNY/ton, a 4.09% increase from the beginning of the month.
Price Trend
Regarding raw materials:
In the first half of September, geopolitical tensions in the Middle East remained volatile, with ceasefire agreements proving difficult to implement, thereby pushing international crude oil prices higher. In the second half of the month, Iran’s president traveled to the United States to attend a conference, while U.S. President Trump publicly stated his willingness to meet with his Iranian counterpart. At the same time, Iran conveyed clear conditions to mediators for resuming negotiations. These signals indicated that the protracted U.S.–Iran standoff was beginning to show tangible signs of diplomatic thaw. Market attention shifted from “supply‑disruption fears” to “de‑escalation and supply restoration.” With shipping risks in the Strait of Hormuz easing, market concerns about global crude oil supplies subsided, leading to a reversal of the geopolitical premium and a sharp pullback in long‑term polypropylene (PP) costs from elevated levels. Meanwhile, propylene prices also declined markedly from their recent highs. Overall, in September, upstream feedstock support for PP initially strengthened before gradually giving way.
Supply side:
As September began, Chinese PP producers alternated between maintenance shutdowns and restarts. Plants such as Datang Duolun and Lianhong Xinke increased their operating rates, while Ningbo Fude and Ningbo Jinfafa carried out partial plant maintenance. In the first half of the month, overall capacity utilization remained near 70%, showing little change compared with the previous period. Toward the end of the month, companies including Quanzhou Guoheng and Zhonghan Petrochemical gradually entered scheduled maintenance, with industry-wide operating rates expected to hover around 65% during and after the extended holiday. This week’s average output fell short of 700,000 tons, and inventories continued to decline, dropping below 490,000 tons and remaining at low levels. Overall, the slow recovery in supply and persistently low inventory levels have provided some support to spot prices, with supply-side factors continuing to offer moderate backing to the spot market.
Demand side:
In September, polypropylene consumption in China was in the traditional peak season, with demand gradually moving out of the off-season levels, and the downstream market slowly following. However, due to the counter-seasonal trend in the cost end, coupled with the fact that the PP spot price had already risen to a high level, buyers were not very receptive to high-priced goods, and the overall trading atmosphere was cautious. End-user enterprises tended to purchase as needed, with orders mostly being small and scattered, leading to low enthusiasm for building inventory, and generally low inventory levels. For small and medium-sized enterprises, the operating rate improved slightly, with the downstream load at around 45% by the end of the month, resulting in overall moderate support for PP from the demand side.
Future Market Prediction
In September, the PP market prices in China surged and then stabilized. From a fundamental perspective, the cost side first increased and then declined, while pre-holiday orders saw a moderate increase in demand, but with current stocking completed, downstream operations have returned to a cautious stance. PP analysts believe that the current demand for PP is limited, and the cost values have been eroded; however, the contraction in supply provides some support to prices. It is expected that the PP market will enter a phase of stalemate in the near future.
