Polypropylene: Shutdowns and Load Reductions Continue to Rise, Bolstering Price Support from Supply Side

  March 31 – In March, the domestic polypropylene (PP) market exhibited a broad-based upward trend, with the monthly average price rising on a month-on-month basis. As of March 31, the monthly average price of PP homopolymer (wire-drawing grade) in the East China region stood at RMB 8,416.14 per ton, up 27.64% from February and 14.56% year-on-year. Affected by raw material shortages and rising costs, the number of enterprises implementing unplanned load reductions or shutdowns increased significantly in March. Coupled with an increase in scheduled maintenance units, the operating load of PP production facilities declined markedly month-on-month, and the sustained supply contraction provided strong support to the PP market. Looking ahead to April, overall supply pressure is expected to further ease. No new production capacity is scheduled to be commissioned during the month; upstream feedstocks—including crude oil and propane—are anticipated to remain relatively tight in supply; and the number of producers undertaking shutdowns or load reductions is expected to rise further. Maintenance-related production losses for PP are projected at 1.1578 million tons, an increase of 17.46% compared to March. Output is forecast at 2.8212 million tons, down 7.21% month-on-month, with daily output decreasing by 4.12% month-on-month. Consequently, supply pressure will further ease. Overall, supply remains tight in April, providing robust price support.