Mar 29, 2024 1:49 p.m.

PP yarn production continues to improve in China as fiber output dives

PP yarn production continues to improve in China as fiber output dives

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The domestic PP fiber production output in China has been constantly falling since it hit the historically high level in mid-April, driven by the strong demand from the mask and medical protective equipment sector. 

Data from CommoPlast showed that on 15 April 2020, about 47.93% of the total PP output in China was fiber grade, the number has fallen to a single digit of 9.17% at the time of this report. Meanwhile, PP yarn production jumped from 12.82% to 33.09% during the same period.  

Clearly, the data underlines the imbalance market fundamental in the PP fiber sector, potentially a supply glut. In recent days, sellers are attempting to digest the excess PP fiber cargoes by bundling with PP yarnhowever, purchasing interest remains timid.

With PP yarn production output continues to increase, Chinese buyers prefer to source cargoes from domestic suppliers to avoid price risk. A number of market participants have expressed the expectation for a minor price correction in the near term.   

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China