Major events of Chinese PP market in Sep 2025

In early September, the 450kt/year PP plant of CNOOC Ningbo Daxie petrochemical II #1 started commercial production. Up to now, the total capacity of PP granule in East China has exceeded 10 million tons/year, bringing the domestic capacity total to 47.485 million tons/year-an increase of 3.7 million tons/year compared to 2024.

On September 17, 2025, Yuanjin New Materials completed the hoisting of 10 large-scale equipment units for the PDH unit in the first phase of its Shangyu Alkane Resource Comprehensive Utilization Integrated Project, including the thermal integration equipment 11E-0101A/B, four reactors from the reaction section, and four catalyst collectors.

The first phase of Yuanjin New Materials' Alkane Resource Comprehensive Utilization Integrated Project covers an area of approximately 1,269 mu. It involves the construction of one 750kt/year PDH unit, two 300kt/year PP units, one 300kt/yera PO unit accompanied by a 250kt/year hydrogen peroxide (100% basis) unit, a hydrogen energy comprehensive utilization unit, as well as supporting public utilities and environmental protection facilities. The propane feedstock for the PDH unit in this project is entirely sourced externally. The propylene produced is fully utilized as raw material for the downstream polypropylene and propylene oxide units. The hydrogen peroxide unit produces 50% concentration hydrogen peroxide, most of which serves as feedstock for the propylene oxide unit, with the remainder sold as commercial product.

On September 19, the 400kt/year polypropylene unit of Guangxi Petrochemical's Refining and Chemical Integration Transformation and Upgrade Project successfully conducted a one-time successful material trial run of its extrusion granulation unit, smoothly producing qualified granules. The expectation for the project to be operational in the fourth quarter has significantly increased.

According to the China Customs, China imported 247kt of polypropylene in Aug 2025, down 21.38% compared to the same period of last year. Of all imports, homo PP imports accounted 159.6kt, down 22.23% compared to the same period of last year; co PP 77kt, down 18.96% year-on-year; ra co PP for 10.5kt, down 25.45% year-on-year. The total export volume of PP in Aug 2025 was about 275.9kt, a year-on-year increase of 29.83%. Of all exports, homo PP exports accounted 250.2kt, up 32.77% compared to the same period of last year. After a gap of two months, the PP trade structure has returned to a net export pattern.

In Sep, the demand in the peak season is not so good, with homo PP raffia prices hitting a new low for the year and also reaching a five-year low.