PP downstream demand continued to be weak

PP downstream demand continued to be weak, spot prices were hard to rise and high costs and negative profits gradually became the normal. Seeing from the above chart, in theory, the loss of coal-based PP was obvious, followed by MTO PP, and others such as oil-based PP and propane dehydrogenation-based PP were near the break-even line.

Till the end of 2022, the average cash flow loss of oil-based PP in 2022 was about 906yuan/mt, about 1,359yuan/mt for outsourced MTO PP, about 2,848yuan/mt for coal-based PP, 580yuan/mt for propane dehydrogenation-based PP, about 289yuan/mt for imported propylene-based PP, and about 198yuan/mt for outsourced propylene-based PP powder.