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Morning Briefing - 29 Sept. 2025At least eleven PP plants in China, with a combined nameplate capacity of 3.8 million tons per annum, have been forced offline since early September for unscheduled turnarounds as deepening margin erosion and a persistent supply glut weigh heavily on market sentiment. |
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CommoPlast
Morning Briefing
29 September 2025
Brent: $70.13 (á $0.71)
WTI: $65.72 (á $0.74)
Naphtha CFR Japan: â $1
Ethylene CFR NEA: â $10
Ethylene CFR SEA: â $10
Propylene FOB Korea: â $2
Propylene CFR China: â $4
*Data represent closing prices of the previous trading day
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Chinese PP Producers Suspended Productions As Margin Erosion Deepened
At least eleven PP plants in China, with a combined nameplate capacity of 3.8 million tons per annum, have been forced offline since early September for unscheduled turnarounds as deepening margin erosion and a persistent supply glut weigh heavily on market sentiment.
Of these facilities, only four have confirmed restart schedules, while the remaining seven are expected to stay offline until market conditions show signs of recovery.
Despite the production cuts, market participants remain doubtful that the outages will provide meaningful support to prices in the near term, pointing to holiday-driven demand weakness and ample overall availability.
According to CommoPlast, China’s domestic PP market has been on a steady downward trajectory since late 2024, punctuated only by brief fluctuations. Spot homo-PP yarn on an EXW China basis has now slumped to levels last seen in April 2020.
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Asian Propylene Market Corrects After Six-Week Rally
The Asian propylene market retreated in the week to 26 September 2025, snapping a six-week rally as persistent weakness in downstream demand and ample supply in China undermined market sentiment. Spot propylene prices on both FOB South Korea and CFR China bases fell by an average of $8/ton week on week.
The prolonged decline in PP has added pressure, with non-integrated producers struggling to absorb current upstream costs. At the same time, market participants reported that domestic propylene supply in China remains comfortable, limiting the need for fresh replenishment.
Looking ahead, six propane dehydrogenation (PDH) plants in China, with a combined annual capacity of 3.8 million tons, are scheduled to go offline between September and October. It remains uncertain, however, whether these outages will be sufficient to stem the downtrend in the propylene market.
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