Sinopec Economics: Polypropylene March maintenance losses hit a new high, sharply reduced supply supports April market expectations

In March, affected by the Middle Eastern geopolitical situation, the upstream raw material prices of PP increased and faced supply disruption risks, leading some manufacturing companies to reduce production and lower capacity utilization. The industry’s operating load rate dropped to the lowest level in history, with both parking losses and output losses reaching new highs. By the end of March, the costs of both processes for PP had exceeded 10,000 yuan/ton, yet the mainstream filament product prices in the East China market still fluctuated between 8,900 and 9,200 yuan/ton. As the production costs of major raw material routes continued to rise and losses worsened, companies’ willingness to operate was further suppressed, thereby driving supply reduction. In April, maintenance activities remained concentrated, and parking losses are expected to hit new records again, further reducing supply. (Zhuochuang Information)