The Credco Wire: China PP Prices Surge 8.5% in May as Supply Crunch Deepens

China’s polypropylene (PP) market extended its strong upward momentum in May, with prices rising by 8.5% during the month amid tightening supply conditions and widespread maintenance shutdowns across major production facilities.

The rally has been supported by a combination of reduced production availability and broader market uncertainty linked to geopolitical tensions in the Middle East, which have influenced sentiment across the global chemical sector since the start of 2026.

Industry data shows that more than 1.84 million tons of PP production capacity was affected by maintenance shutdowns during May. The large volume of offline capacity significantly tightened domestic supply and provided strong support to market prices.

Several major plants, including units operated by Sinopec-SK (Zhonghan Petrochemical) and Shenhua Ningmei, are undergoing extended maintenance programs lasting more than a month. In addition, restart schedules for some facilities remain uncertain, raising expectations that supply pressure could continue through June and July.

The concentration of maintenance shutdowns, coupled with relatively low operating rates, has kept PP availability restricted. Market participants believe the current tight supply environment is unlikely to ease significantly in the near term.

Although some short-term maintenance shutdowns are expected to conclude by the end of May, most large-scale facilities remain offline. As a result, domestic PP supply is not expected to increase substantially before June.

Downstream demand remains moderate, limiting overall trading activity. However, supply shortages in the spot market continue to outweigh weaker consumption trends, keeping prices well supported.

Looking ahead, market participants expect PP prices to remain firm in the short term. Attention will remain focused on plant restart schedules, feedstock availability, and any changes in downstream demand that could influence market direction.

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