{"id":8484,"date":"2025-12-01T14:25:47","date_gmt":"2025-12-01T07:25:47","guid":{"rendered":"https:\/\/abcchem.com\/china-pp-prices-repeatedly-hit-5-year-lows-amid-supply-demand-tug\/"},"modified":"2026-01-27T13:50:06","modified_gmt":"2026-01-27T06:50:06","slug":"china-pp-prices-repeatedly-hit-5-year-lows-amid-supply-demand-tug","status":"publish","type":"post","link":"https:\/\/abcchem.com\/cn\/china-pp-prices-repeatedly-hit-5-year-lows-amid-supply-demand-tug\/","title":{"rendered":"\u5728\u4f9b\u9700\u62c9\u952f\u4e4b\u4e0b\uff0c\u4e2d\u56fdPP\u4ef7\u683c\u591a\u6b21\u8dcc\u81f3\u8fd1\u4e94\u5e74\u4f4e\u70b9\u3002"},"content":{"rendered":"

China’s polypropylene (PP) spot prices continued to set new 5-year lows in October. By October 15, East China homo-injection grade fell to Yuan 6,578\/tonne, down 14% year-on-year, according to OilChem. The repeated lows stem from overlapping pressures: supply-demand imbalance, cost pressure, and substitute competition. The key market question remains: where is the floor for PP prices?<\/p>\n

China PP Weekly Prices, 2024\u20132025 (Unit: Yuan\/tonne)<\/p>\n

\"\"<\/p>\n

\u6765\u6e90\uff1aOilChem<\/p>\n

PDH-based producers play a critical role in PP supply, especially under current cost pressures. Adjustments in PDH operating rates provide essential market support.<\/p>\n

Monthly Capacity Utilization & Profit of China PDH-based PP Producers, 2024\u20132025 (Unit: Yuan\/tonne, %)<\/p>\n

\"\"<\/p>\n

\u6765\u6e90\uff1aOilChem<\/p>\n

In Q4, China-U.S. tensions have resurfaced as a market focus. High import dependence for propane has weakened the operational stability of domestic PDH units. Although Saudi Arabia’s September CP cut helped restore some PDH margins, losses remain high at Yuan 600\u2013800\/tonne. A special port fee of Yuan 400\/tonne is now being levied, and with no new policy guidance, PDH producers must reassess feedstock plans, raising the likelihood of further operating rate cuts.<\/p>\n

Substitution demand is also noteworthy, as the PP powder-pellet spread has narrowed below Yuan 100\/tonne, hitting a record low.<\/p>\n

China PP Powder-Pellet Price Spread, 2024\u20132025 (Unit: Yuan\/tonne)<\/p>\n

\"\"<\/p>\n

\u6765\u6e90\uff1aOilChem<\/p>\n

PP powder and pellet compete in overlapping downstream applications. A spread of Yuan 100\u2013200\/tonne has historically indicated balance. However, high propylene costs in 2025 have squeezed PP producer margins, with powder showing relative price strength. By October 15, the spread narrowed to Yuan 75\/tonne, reaching a level that theoretically encourages substitution.<\/p>\n

Meanwhile, PP producers are converting toward more special grades to ease oversupply in standard material.<\/p>\n

China Major PP Categories Prices, 2025 (Unit: Yuan\/tonne)<\/p>\n

\"\"<\/p>\n

\u6765\u6e90\uff1aOilChem<\/p>\n

Producers can adjust output mix given PP’s diverse applications. High-melting fiber currently holds a clear price advantage, trading at a Yuan 364\/tonne premium over homo-injection grade. Supply cuts from key high-melting fiber producers, including Dalian Petrochemical during transition and Donghua Energy (Zhangjiagang) under maintenance, are supporting this premium.<\/p>\n

Other special grades like thin-wall injection, transparent, and impact copolymer PP also offer better margins. Although these grades move more slowly than commodity material, their profitability should encourage production. Such structural shifts may lend resilience to the general-purpose PP market.<\/p>\n

In summary, although oversupply persists, the PP market is finding support from: lower PDH operating rates, substitution driven by narrow powder-pellet spreads, and active product switching by producers.<\/p>\n

Near-term risks include fund flows linked to trade tensions. A sharp drop in crude prices or persistently weak end-user demand could still push PP lower. Longer term, however, supply optimization and gradual demand recovery should help PP exit the low-price trap. Watch the Yuan 6,550\/tonne support level.<\/p>","protected":false},"excerpt":{"rendered":"

\u4e2d\u56fd\u805a\u4e19\u70ef\uff08PP\uff09\u73b0\u8d27\u4ef7\u683c\u572810\u6708\u4efd\u7ee7\u7eed\u5237\u65b0\u8fd1\u4e94\u5e74\u65b0\u4f4e\u3002\u622a\u81f310\u670815\u65e5\uff0c\u534e\u4e1c\u5730\u533a\u5747\u805a\u6ce8\u5851\u7ea7PP\u2026<\/p>","protected":false},"author":1,"featured_media":8775,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[611],"class_list":["post-8484","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-other","tag-china-pp-prices-repeatedly-hit-5-year-lows-amid-supply-demand-tug"],"_links":{"self":[{"href":"https:\/\/abcchem.com\/cn\/wp-json\/wp\/v2\/posts\/8484","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/abcchem.com\/cn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/abcchem.com\/cn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/abcchem.com\/cn\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/abcchem.com\/cn\/wp-json\/wp\/v2\/comments?post=8484"}],"version-history":[{"count":0,"href":"https:\/\/abcchem.com\/cn\/wp-json\/wp\/v2\/posts\/8484\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/abcchem.com\/cn\/wp-json\/wp\/v2\/media\/8775"}],"wp:attachment":[{"href":"https:\/\/abcchem.com\/cn\/wp-json\/wp\/v2\/media?parent=8484"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/abcchem.com\/cn\/wp-json\/wp\/v2\/categories?post=8484"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/abcchem.com\/cn\/wp-json\/wp\/v2\/tags?post=8484"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}