1、Today's Summary

①、Crude Oil: 3/3: The market is concerned that the additional tariffs imposed by the US will drag down the global economy and demand. Additionally, it remains uncertain whether OPEC+ will delay its production increase plan, leading to a decline in international oil prices.

②、PP Market: As of midday, the mainstream price for drawing materials in East China is between 7340-7450 yuan/ton.

2、Spot Overview

Table 1 Domestic Recycled PP Price Summary (Unit: yuan/ton)

Using Shandong as a benchmark, the price of high-quality white transparent first-grade granules today is 5900 yuan/ton. The market price trend is stable, in line with early expectations. Upstream raw material supply is tight, causing an increase in procurement costs for enterprises. Enterprises are maintaining firm offers, and the price difference between new and recycled materials is below the reasonable range, which suppresses the momentum for price increases in recycled materials. Recycled material enterprises are flexibly arranging production, being cautious in transactions, and focusing on actual order negotiations.

3、Production Dynamics

This week, the capacity utilization rate of the recycled PP market continued to rise slightly. With the peak season approaching, downstream product companies have seen a gradual increase in orders, and the atmosphere for purchasing raw materials is acceptable. However, downstream buyers are cautious about purchasing high-priced resources, and the market is dominated by a wait-and-see attitude. Recycled material enterprises are flexibly arranging production and reasonably controlling inventory. It is expected that the capacity utilization rate of the recycled market will see a slight increase next week. As of February 27, the capacity utilization rate of sample enterprises in the recycled PP market was 24%.

4、Price Forecast

The market price trend for recycled PP is mainly stable. With the peak season approaching, downstream demand is gradually being released, and the inquiry atmosphere for raw materials has improved. However, the market offer trends remain firm, and purchasers are cautious, mostly entering the market based on essential needs. Orders within the market are increasing slowly. The market price trend for new materials is weak, and the price difference between new and recycled materials has fallen to a low level. Recycled material enterprises are selling according to the market, flexibly arranging production, and focusing on actual order negotiations. It is expected that the short-term market trend may continue to be stable, and it is recommended that enterprises purchase based on essential needs.