Market participants widely expect no large-scale escalation of the U.S.-Iran conflict, easing market fears over potential attacks on Middle Eastern energy infrastructure. The geopolitical risk premium for crude oil has continued to fade, leading to a lower close in international crude oil prices. Dragged by the weaker upstream cost side, PP futures trended lower with fluctuations in the night session, while the domestic spot market maintained a weak and volatile pattern.

On the supply side, the overall operating rate of domestic polypropylene plants has fluctuated slightly with no obvious upward or downward trend recently. The delivery pace of new market supplies has slowed down, easing the pressure of social inventory accumulation on a temporary basis, and there is no significant incremental supply impact on the market.

On the demand side, market performance remains sluggish. Downstream manufacturers engaged in plastic weaving, injection molding and film production only adopt rigid demand procurement. There is no active bullish sentiment or bulk stockpiling willingness among market players, resulting in a subdued overall trading atmosphere and low market transaction volume.

Given lingering uncertainties over the Middle East geopolitical situation and crude oil prices, there are no clear driving factors on both supply and demand ends. The domestic PP spot market is expected to continue trading within a narrow range with fluctuations today.