China PP Exports Surge to Record High as Middle East Supply Cracks Widen

• Jingmen lifted PP fiber Y26 by 50 yuan to 9,950 yuan per tonne
• Daqing raised drawing T30S by 120 yuan to 9,560 yuan per tonne
• Fushun pushed L5E89 up 100 yuan to 9,570 yuan per tonne across its 390,000 tonne complex
• China PP exports hit a record 405,500 tonnes in March, confirming net exporter status
• 5.45 million tonnes of new Chinese PP capacity scheduled for 2026, weighted to H2

Polypropylene producers across China lifted ex-works quotations on Monday as the prolonged Middle East supply squeeze continued to filter through into Asian olefin economics. Jingmen Petrochemical, operating a 120,000 tonne per year polypropylene line, raised its fiber grade Y26 by 50 yuan to 9,950 yuan per tonne with the unit running at normal load. Daqing Petrochemical lifted its 100,000 tonne per year drawing grade T30S by 120 yuan to 9,560 yuan per tonne, and Fushun Petrochemical, which runs two lines with combined capacity of 390,000 tonnes per year, raised drawing grade L5E89 by 100 yuan to 9,570 yuan per tonne. Spot prices offered by merchants tracked the producer adjustments, and overall trading was reported as moderate.

The hikes mark the third consecutive month in which Chinese state-linked petrochemical complexes have pushed nominations higher, mirroring sustained pressure from upstream naphtha and propylene values. With the Strait of Hormuz still effectively closed to large tonnage and only feeders trickling cargoes out of the Persian Gulf, naphtha flows into Asia have dropped sharply. Around 60 percent of Asia's seaborne naphtha imports normally transit Hormuz, and the bottleneck has trimmed South Korean cracker rates to near 66 percent. China's coal-to-olefin and propane dehydrogenation routes have been less exposed, and operators on those routes are capturing improved spreads by running flat-out and exporting into the gaps left by hobbled Middle East and Korean supply.

Request the Latest Polypropylene Data - Get Your Free Sample Report

Chinese polypropylene exports hit a record 405,500 tonnes in March and remained robust in April, with cumulative first quarter shipments of 939,900 tonnes representing a transition for China into a net exporter position. India, which would normally absorb both Middle Eastern and Korean PP, has stepped up purchases of competitively priced Chinese drawing and fiber grades despite the approaching monsoon lull. Converters across packaging, raffia and fiber segments have been working through pre-conflict inventory, but several are now signaling that further price hikes will start to pinch margins as finished goods price escalation continues to lag raw material moves.

The broader risk for procurement teams is sustainability of the current rally. New PP capacity additions in China are scheduled at 5.45 million tonnes for the calendar year, with most arriving in the second half. If Hormuz reopens before that wave starts up, the polypropylene market could swing from acute tightness to a sharp downside correction in a matter of weeks. Buyers running index-linked contracts should reassess surcharge caps and consider laddering forward cover into Q3.