Homo PP raffia and low-MFR co PP price spread drops to historical low

PP spot prices have weakened after PP futures reached its ceiling since mid-July, and the sharpest drop is seen in low-MTR co PP. The price of low-MTR co PP is almost as low as the price of Homo PP raffia in many regions till this week, and is even lower than homo PP raffia in some regions. This report will analyze why the price spread between homo PP raffia and low-MTR co PP drops to historical low level this year.

1. For production, the pressure of co-polymer PP is significantly higher than that of homo PP.

In 2019, co polymer PP production has been growing evidently compared with the same period of last year, in June particularly, the year-on-year (y-o-y) growth is over 40%, which was the highest monthly output growth rate in the past two years.