According to data from Shengyi Society’s spot trading platform, the domestic PP market fluctuated at a high level in April, with prices of various product brands fluctuating. As of April 30th, the benchmark price for PP drawing offered by Shengyi Society was 9316.67 yuan/ton, an increase of 4.18% compared to the beginning of the month.
price trend
In terms of raw materials:

Entering April, the situation in the Middle East has been fluctuating, and the market’s attitude towards the production and transportation of crude oil in the Middle East under the influence of geopolitical factors has shown differentiation and easing. The signals of a ceasefire between the United States and Iran continue, and the international oil price premium is rapidly shifting towards negotiations to ease expectations and resonate with negative fundamentals. Intermittent resumption of navigation in the Strait of Hormuz, IEA downgrades supply and demand expectations, while API inventories surge. The combination of multiple factors causes fluctuations in the trend of crude oil and looseness in the remote cost value of PP. In terms of propylene, the centralized maintenance of enterprise equipment was implemented within the month, and the demand side received stable goods. After the spot price rose to a high level, it entered the consolidation market. Although the arrival of propane at ports remains low, overseas prices have been revised downwards at high levels in the middle of the month, while domestic spot prices remain strong. Overall, the prices of various PP raw materials have fluctuated, which has loosened the support for PP costs.
Supply side:
During the April period, domestic PP enterprises concentrated their maintenance plans, and the overall operating rate rapidly declined to a historical low. As of the time of writing, the overall load of the domestic industry is over 60%. The current inventory position is over 760000 tons, and the imported goods are at a low level on the port side. Overall, the supply side has strong support for spot prices.
In terms of demand:
Affected by the rising market in March, PP prices were already at a high level in early April, and the overall trading atmosphere in the downstream market of the industry turned cautious. In the first ten days, oversold contracts and chasing orders from refineries were basically delivered, but the pace of subsequent transactions slowed down and warehouse building operations decreased. Buyers often use and take as you go, with scattered small orders being the main focus. Some terminal small and micro enterprises that have reduced production and stopped production due to high cost pressures have limited resumption of work, while large and medium-sized enterprises continue to stabilize and acquire goods. The demand side is generally in a wait-and-see situation, and its performance falls short of market expectations. Although some pre holiday stocking and consumption have entered the market, the volume is limited and the support for PP is average.
Future forecast
The domestic PP market price remained high and consolidated throughout April. Fundamentally speaking, during the peak maintenance season in April, the industry’s load position bottomed out, and port imports remained low. However, with a large production capacity base, the supply of goods can still meet the demand. Business Society PP analysts believe that the current PP market is torn between long and short positions, with ambiguous guidance and insufficient market action in the future, and may maintain a consolidation trend.