[pp daily review] buying sentiment weak, polypropylene market weakly consolidates

1 Today's Summary

①, Sinopec East China PP Price Adjustment: Yangzi Petrochemical: PPR pipe material and homopolymer injection molding decreased by 50 yuan/ton, Zhenhai Refining & Chemical: Unsold M09-GD powder material decreased by 300 yuan/ton, Zhenhai Limited: Foam material E08EBJ decreased by 200 yuan/ton.

②. Today, the domestic polypropylene shutdown impact rate decreased by 1.85% from yesterday to 16.59%. Today's domestic PP units: The first line (500,000 tons/year) PP unit of Guangdong Petrochemical has restarted. The second line (250,000 tons/year) PP unit of Dushanzi Petrochemical has restarted. The third line (200,000 tons/year) PP unit of Shanghai Petrochemical has been shut down for maintenance. The daily production proportion of raffia increased by 1.84% to 27.29%.

③、 The supply-demand balance for this period continues to be in a tight equilibrium. However, as the supply-demand gap quickly narrows from a negative value, it lacks strength to influence market prices. In the next period, the supply-demand balance gap will slightly widen due to a significant decrease in supply, but the weakening demand will not strongly support the market. 。

2 Spot Overview

Today, polypropylene raffia in the East China region closed at 6,400 yuan/ton, down 23 yuan/ton from yesterday, in line with morning expectations. Morning Futures showed a volatile downward trend, and today the polypropylene market saw declining offers. Over the weekend, buying sentiment in the market was insufficient, downstream purchasing enthusiasm was limited, and merchants cautiously offered discounts to sell. Actual transactions were negotiated. By midday, the mainstream prices for raffia in East China were between 6300-6500 yuan/ton. 。

3 ========

Based on the basis difference, today's basis in North China is 13 yuan/ton, an increase of 10 yuan/ton compared to yesterday; the polypropylene basis difference in East China is 14 yuan/ton, a decrease of 13 yuan/ton compared to yesterday.

4 Production Dynamics

Polypropylene The capacity utilization rate increased from 78.07% to 78.99%, up 0.92% compared to yesterday. The oil production profit increased by 7.18 yuan/ton compared to yesterday, reaching -634.3 yuan/ton. 。

5 Market sentiment

Recently, polypropylene plant maintenance has remained relatively concentrated, yet spot supply is still ample. From the demand side, downstream industries have shown insufficient purchasing power for raw materials due to factors such as profit, with transactions mostly maintaining just-in-time requirements. Market sentiment remains cautious.

6 Price prediction

The cost side of international oil prices is experiencing wide fluctuations, providing limited guidance to the polypropylene (PP) market. From a fundamental perspective, the supply side offers relatively limited support to the market, with spot market resources tending to be ample. On the demand side, downstream operations are steadily increasing, but the follow-up on new orders is limited, and enthusiasm for raw material procurement is low. In the short term, the market as a whole still lacks upward momentum. It is expected that the polypropylene market next week will... Weak oscillation is predominant.

7 Related Product Information

Table 2 Summary of Prices for Polypropylene Related Products (Unit: Yuan/Ton)

8 Data Calendar

Table 3 Overview of Domestic Polypropylene Data (Unit: 10,000 tons)