Operating Rate Edges Lower
China’s PP nonwoven sector has posted an operating rate of 37.98% recently, down 0.17 percentage point from the previous week. The slight dip reflects cautious production planning amid mixed market signals, with most mills keeping runs lean to match tepid order books.
Prices Firm on Crude Rally
Average prices for PP spunbond nonwoven fabric jumped by RMB 200 to settle at RMB 11,280/ton last week. The uptick came as rising crude oil costs pushed polypropylene fiber feedstock higher, reinforcing cost support across the nonwoven value chain.
Geopolitical Risks Fuel Oil Surge
Escalating US‑Iran tensions and renewed Houthi threats to Red Sea shipping reignited global supply concerns, sending oil prices sharply upward. This geopolitical premium quickly translated into a PP spot market spike, with offers hitting RMB 9,100–9,300/ton on July 20th. Although production rates inched up, overall operating levels stayed low; combined with heavy forward selling, spot inventories remained tight, feeding a bullish sentiment among traders.
Demand Cap vs. Cost Push
Despite the cost‑driven rally, the market faces a clear demand ceiling. The off‑season for nonwoven end‑uses means downstream buyers are reluctant to absorb high‑priced materials. Most replenishment activity stayed within trading circles, while factory‑level orders remained scarce. The result is a tug‑of‑war between rising costs and weak consumption, keeping the market range‑bound but volatile in the near term.
Outlook: Prices Supported, Rates Subdued
Looking ahead, the risk of further US‑Iran friction keeps oil prices elevated, ensuring strong cost backing for PP nonwoven. Prices are likely to remain firm or inch higher, with limited downside. However, the high‑cost environment will continue to suppress end‑user demand, and order intake is expected to stay sluggish. Consequently, the operating rate is forecast to linger at current low levels, as mills balance margin pressure against weak consumption.
Post time: Jul-31-2026
