In the first quarter of 2024, Polypropylene Staple Fibre prices in China saw a 1.8% decrease compared to the previous quarter. This drop was driven by a softening in demand from the textile industry, despite improvements in the post-pandemic economic environment. Manufacturers in China focused on managing inventory levels, contributing to the price decline. Global factors, such as rising raw material costs and supply chain disruptions, also played a role in the downward trend of Polypropylene Staple Fibre prices during this period.
In the second quarter of 2024, the situation in China worsened as Polypropylene Staple Fibre prices experienced a further decline. The drop was largely due to a continued softening in demand, which resulted in ample inventory for manufacturers. To manage this, production adjustments were made, further influencing prices. Globally, the Polypropylene market remained impacted by inflationary pressures and increasing feedstock Polypropylene costs, though China’s manufacturers appeared cautious, keeping production aligned with current market conditions.
By August 2024, Polypropylene Staple Fibre prices in China were reported at approximately USD 1,220/MT, slightly higher than the previous quarter. This increase is attributed to improving global supply conditions. Additionally, the global economic landscape, marked by uncertainty and fluctuating energy prices, contributed to more conservative inventory management, helping to prevent excessive price fluctuations in China.
In the fourth quarter of 2024, Polypropylene Staple Fibre prices in China are likely to experience fluctuations as manufacturers prepare for potential increases in demand during the festive season. Production levels may ramp up to meet this anticipated demand, which could lead to a rise in prices. Additionally, global factors such as rising feedstock Polypropylene costs and ongoing energy price volatility are expected to influence market dynamics. While manufacturers may aim to manage inventory effectively, any significant shifts in demand from key international markets could further impact pricing strategies in China.