The ongoing Iran conflict and its escalating spillover risks continue to plague the global crude oil market, leading to persistent price volatility that has rippled through the downstream petrochemical sector, particularly the polypropylene (PP) spot market.

As a key upstream raw material for PP production, crude oil prices have been fluctuating sharply amid growing concerns over supply disruptions. This geopolitical uncertainty has kept crude oil prices in a state of turbulence, directly impacting the cost base of PP production and further transmitting to the spot market.

Against this backdrop, the PP spot market has witnessed volatile quotation movements in recent sessions. Market participants report that spot offers for PP have been fluctuating in line with crude oil price swings, reflecting the close correlation between the two markets.

From the supply-demand perspective, the PP market is facing a tightening supply situation as maintenance-related output losses have increased month-on-month. A number of domestic PP production units have entered maintenance or reduced operating loads recently, including facilities operated by major petrochemical enterprises, leading to a noticeable contraction in market supply resources. This supply tightening has provided some support to PP spot prices, mitigating the downward pressure from weak demand.

On the demand side, downstream industries have maintained a prudent purchasing strategy, primarily procuring raw materials on an as-needed basis. .

Market analysts note that the PP spot market is likely to remain in a volatile pattern in the short term, closely tied to the evolution of the Iran conflict and crude oil price trends. The supply side will continue to be affected by unit maintenance schedules, while downstream demand is expected to recover gradually but at a moderate pace. For foreign trade enterprises and market participants, closely monitoring geopolitical developments, crude oil price fluctuations, and PP supply-demand changes will be crucial for making rational trading decisions.