[Industry News] PP Nonwoven Industry Remains Under Pressure with Rigid Costs, Weak Demand, Low Margins and Reduced Operating Rates

Meanwhile, the industry is entering its traditional low season, with overall end-user demand remaining weak. As a result, the PP nonwoven sector is facing multiple operational challenges, including elevated raw material prices, insufficient downstream orders, and mounting pressure from raw material inventories.

During the week, several polypropylene units that had previously undergone maintenance gradually resumed operations, further reducing production losses caused by plant shutdowns and supporting a marginal recovery in overall industry output.

The polypropylene market surged initially but retreated rapidly later in the week. Although some producers resumed production, the increase in overall operating rates remained limited. As a result, supply-side pressure across the industry is still considered relatively manageable.

The decline in inventories is mainly driven by two factors:

1. 1 Tighter supply on the cost side, making it increasingly difficult for small and medium-sized enterprises to procure raw materials.
2. 2 Seasonally weak demand, coupled with persistently high raw material prices, has led most PP nonwoven producers to adopt a cautious, on-demand restocking strategy, limiting their willingness to build up inventories and contributing to the continued decline.

Additionally, although the U.S.–Iran peace talks are progressing in an orderly manner, market risk-aversion sentiment over potential geopolitical escalation remains. As a result, nonwoven enterprises are cautious about future prospects, proactively reducing raw material stocking and strictly controlling capital tied up in inventory.

Before the holiday, strong cost support kept polypropylene feedstock prices at high levels. After the holiday, futures markets initially spiked but quickly retreated, and geopolitical risk premiums were gradually digested. However, spot supply remained tight, and nonwoven finished product prices did not fall in tandem, keeping overall market trends relatively firm.

Nevertheless, industry operating pressure remains significant. On one hand, the end market has entered the traditional low season, with downstream buyers mainly consuming previous inventory; new orders are weak, and high raw material costs are difficult to pass down, leaving the industry generally in a low-profit or near-breakeven state. On the other hand, profit pressures have suppressed production willingness. As the supply-demand tension continues, the PP nonwoven industry’s operating rates are expected to remain weak and fluctuate in the short term.

In summary, the current PP nonwoven industry is under dual pressure from costs and demand, with operating stress continuing to be apparent. Geopolitical tensions support high crude oil and polypropylene fiber prices, while tight spot supply strongly supports raw material costs. However, the industry is in a seasonal demand lull, end-market order follow-up is weak, and downstream restocking willingness is low, making it difficult for high costs to be passed down. Profit margins remain under pressure, production enthusiasm is limited, and overall industry operating rates are likely to remain weak and fluctuate.