PP remains stable, the market stalemate expected to continue

It has been nearly half a month since the Chinese New Year holiday ended, and the PP spot market has shown relatively stable performance, with price fluctuations of less than 50yuan/mt. As of Feb 18, mainstream traders offer for homo PP raffia are at 7370-7480yuan/mt in East China.

In terms of futures trends, the overall fluctuation range has also narrowed.

Regarding inventory, the increase in inventory during the 2025 Chinese New Year holiday was relatively significant, reaching a high point for the year. Looking at the trend of petrochemical inventory after the holiday, inventory declines slowly, which is, related to the gradual resumption of downstream productions.

Note: Specific values may vary due to statistical cycles and other factors, and are for reference only.

After the Lantern Festival, downstream production gradually returned to normal. Taking BOPP as an example, as of Feb 14, except for some plants still undergoing maintenance, most companies have resumed normal operations. The overall operating rate of BOPP has approached pre-holiday levels. However, based on actual market conditions, feedback from traders is not optimistic. Downstream buyers are restocking at lower prices, leading to a stalemate in transactions.

In short, the slow inventory digestion corresponds to the weak demand. The downstream demand fails to meet expectations, and there are no other short - term bullish factors. Therefore, PP market may remain volatile.