On August 22, 2026, the comprehensive benchmark price for  PP (polypropylene) tracked by SunSirs stood at 9246.67 RMB/tonne, compared to 9,020 RMB/tonne on August 1. Throughout August, domestic spot prices saw a slight pullback but generally remained volatile at high levels. In July, geopolitical disruptions affecting international crude oil drove up costs and, consequently, PP prices; however, after an initial surge, prices retreated due to resistance from downstream sectors—which were in their traditional off-season—against the high costs, creating a market dynamic characterized by "cost-driven floors and demand-driven ceilings." Entering August, sentiment regarding crude oil cooled, marginally weakening raw material support. Domestic supply remained ample, while downstream plastic weaving and injection molding industries limited purchases to essential needs, avoiding large-scale stockpiling.

Customs data on the import and export of primary-form PP in July shows that domestic imports totaled 200,100 tonnes—a significant year-on-year decline. Homopolymer grades accounted for the bulk of imports, though overseas commodity-grade materials lacked cost-competitiveness; only specific copolymer and high-end modified grades maintained steady import volumes. Exports totaled 337,100 tonnes, a marked month-on-month drop; the arbitrage window for exports effectively closed after domestic spot prices rose, leading to a contraction in traditional orders from Southeast Asia, with purchasing volumes remaining steady only in parts of the South Asian market. While exports remained high in the first half of the year—driven by domestic capacity expansion displacing imports—the export diversion effect weakened significantly after the price ratio reversed in July, resulting in a larger volume of goods remaining in the domestic market.

The market trends in July were primarily driven by external geopolitical factors affecting crude oil. A rebound in international crude oil prices raised propylene costs, while petrochemical enterprises controlled supply to support prices; combined with ongoing inventory destocking across the supply chain, this triggered a significant rise in national PP spot prices. However, as downstream sectors were in their traditional off-season, acceptance of high-priced raw materials among plastic weaving, injection molding, and BOPP film manufacturers was limited. Buying interest contracted at higher price points, causing prices to retreat after peaking in mid-to-late July and subsequently consolidate at high levels toward the end of the month. Entering August, domestic plant operating rates remained at moderate levels; with maintenance and production restarts occurring concurrently, the industry's massive capacity base ensured an ample supply of goods. On the cost side, crude oil prices fluctuated repeatedly and propylene prices moved within a range, lacking the momentum for a sustained, unidirectional rally. Downstream end-use sectors remained in their off-season; processing plants focused on consuming existing inventories and showed little willingness to chase higher prices. Traders adjusted to market conditions; while inquiries were decent, actual orders were limited to small volumes driven by immediate needs. Nationally, the reality of loose supply continued to cap upward price movement, with market trends largely tracking raw material fluctuations rather than a substantive recovery in end-user demand, resulting in continued range-bound spot prices. A mismatch between domestic production and demand persisted: coal-based supplies from the Northwest continued to flow into other regions, with East and South China serving as key consumption hubs, while Central and Southwest China remained heavily reliant on external inflows.

Henan is a major consuming province that relies heavily on resource inflows; its local plastic product output accounts for 3–4% of the national total, and its regional polypropylene (PP) market capacity reaches the million-tonne level. However, limited local production has led to a widening supply gap. Following the shutdown of two local plants for maintenance last October, local supply contracted further; this was compounded by reduced operating rates at oil-based enterprises facing raw material cost pressures, leading to even lower local output. Consequently, the market relies heavily on inter-regional inflows from the Northwest, North China, and East China, making the province a key destination for supplies from surrounding areas.

Regarding the downstream demand structure, the plastic weaving industry is Henan's largest consumption sector—concentrated in areas like Yanshi, Shangqiu, and Jiaozuo—and primarily consumes homopolymer PP (yarn grade). While demand is supported by packaging needs for grain, fertilizers, and minerals—making it relatively inelastic—it is highly sensitive to raw material prices, leading to the blending of recycled materials. Injection-molded products constitute the second-largest consumption sector, with stable demand for food containers, logistics crates, and livestock farming accessories. Demand in sectors such as BOPP and CPP packaging films, as well as medical electronics, has also grown steadily; the downstream industrial clusters are well-established, lending resilience to regional demand.

In August, national futures prices fluctuated downward; however, Henan’s downstream plastic weaving and injection molding plants maintained steady demand driven by immediate needs. Consequently, the decline in regional prices was slightly less pronounced than in major production areas, reflecting a distinct regional price spread. The local market faces pressure when supplies from other regions arrive in concentrated volumes; conversely, regional price quotes prove relatively resilient when the pace of inter-regional shipments slows and supply gaps widen.

Nationwide, the PP market possesses ample overall production capacity, with further capacity additions expected. Future price trends will largely depend on fluctuations in raw material costs and the extent of pre-stocking ahead of the "Golden September" peak season. Barring a surge in concentrated demand from end-users, the market is likely to continue its fluctuating trend.

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