SunSirs: With a Recovery in Downstream Demand, Propylene Prices Shifted Strongly Upward

Market Overview: Gains exceeded 5% for the month; bullish sentiment was strong

According to the latest data from SunSirs, the benchmark price for propylene stood at 7,811.00 RMB/ton as of July 2, 2026. Compared to the price of 7,411.00 RMB/ton at the beginning of the month (June 30), the price continued to rise during the week, marking a cumulative monthly increase of 5.40%.

Recent price trends reveal a strong market momentum characterized by an "accelerated rise following a rebound from the bottom":

June 25–26: The market underwent a brief pullback, with prices dipping to around 6,851 RMB/ton—a decline of approximately 3.41%.

June 27–28: Prices stabilized at the low end, recording zero fluctuation (0.00% change) for two consecutive days and establishing a solid support base.

June 29–July 1: Driven by buying interest, prices embarked on a continuous upward trend. Starting from 7,211 RMB/ton, the price saw a single-day surge of up to 5.25%; despite minor subsequent fluctuations, the overall price level continued to climb, eventually breaking through the 7,800 RMB/ton mark and confirming a short-term upward trend.

Fundamental drivers: Broad-based price increases in downstream products were creating a positive feedback loop.

The strengthening of the propylene market last week was not an isolated phenomenon but was strongly supported by the downstream industry chain:

Polypropylene (PP): As the largest downstream consumer of propylene, PP (specifically the yarn grade) has performed exceptionally well. On July 2, the benchmark price stood at 7,940.00 RMB/ton, marking a 4.93% increase over the month. The firm pricing of PP has directly improved profit expectations for propylene producers, driving up ex-factory prices.

Propylene oxide: The price of another key downstream product, propylene oxide, also rose moderately to 7,800.00 RMB/ton (+1.30%).

Rising prices for downstream products alleviated the pressure of cost pass-through, thereby increasing downstream plants' acceptance of high-priced propylene and sustaining a decent level of purchasing interest. This positive feedback loop—whereby rising finished-product prices drove up raw material costs—was the primary driver behind propylene prices breaking out of their previous fluctuation range last week and posting gains of over 5%.

Market Outlook

Overall, the propylene market is currently on a positive trajectory characterized by simultaneous growth in both volume and price; fundamentally, the release of downstream demand provides solid support.

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