Polypropylene Prices Soar on Geopolitical Tensions, But Downward Pressure Looms

The polypropylene market has experienced a rapid rise in prices due to a confluence of factors, including ongoing geopolitical tensions and risks to energy supplies.

In early July, crude oil prices rebounded as mutual attacks between the US and Iran reignited tensions, bolstering cost-side support for PP. The price of 'drawing-grade' PP in East China reached 9,025 RMB/tonne on July 22, up 13.17% from the end of June and 27.29% year-on-year.

However, as market sentiment became increasingly volatile, prices trended downward this week. On July 28, the price of PP raffia-grade resin in East China stood at 8,840 RMB/tonne, marking a 2.32% decline from the previous Friday.