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PP Market Analysis, December 16, 2025
The domestic PP market in China saw a steady rise in the previous working day. Rising PP futures boosted the spot market sentiment, with some coal chemical plants raising prices, strengthening cost support. Traders, based on order costs, slightly increased offers for some PP raffia grade products, while prices for other non-standard products remained mostly stable. Downstream buyers were cautious, with actual transactions focusing on negotiation. Overall, the price increase in futures prices spurred restocking sentiment among downstream buyers, with some holders achieving daily average transaction volumes.
Key Factors Affecting Market Price Changes This Period:
Demand: Downstream operating rates remained relatively stable, but order intake weakened. Coupled with a lack of confidence in the future market, most buyers maintained a cautious wait-and-see approach, resulting in weak purchasing intentions and failing to boost the spot market.
Supply: Currently, with the restart of several previously shut-down plants, PP operating rates have increased, leading to a relatively ample supply in the upstream market. Supply-side pressure is expected to remain.
Sensation: Expectations of increased inventory and ongoing efforts to end the European conflict are putting downward pressure on prices. Concerns about oversupply have led to a three-day consecutive decline in European and American crude oil futures. Short-term cost factors are unlikely to provide a significant boost to the PP market.
Trend Analysis: Zhuochuang Information’s View: The PP market is expected to consolidate with a slightly weak bias today. From a fundamental perspective, supply remains tight, and demand is unlikely to increase significantly, leaving little upward momentum in the market. Furthermore, weak crude oil prices offer little support on the cost side, and PP futures also fluctuated and declined overnight. With no clear upward direction in sight, the PP market is expected to consolidate with a slightly weak bias today.
