Daily Review: Polypropylene (PP) Market Slightly Rebounds, Market Sentiment Improves

On December 15th, the average market price of polypropylene pellets was 6,215 yuan/ton, an increase of 13 yuan/ton from the previous working day, with a rise of 0.21%. Today, the mainstream market transaction price for polypropylene pellet wire drawing ranged between 6,200-6,400 yuan/ton. The domestic mainstream market prices slightly rebounded. In the morning, the futures market slightly increased, boosting the sentiment of the spot market. Recently, repair facilities within the market have gradually resumed operations, resulting in significant supply-side pressure. Downstream manufacturers have limited follow-up on new orders and continue to purchase raw materials based on actual demand, leading to cautious market transaction atmosphere.

North China Market: On December 15th, the PP prices in the Linyi market stopped falling and adjusted upwards, with average demand and lackluster trading activity. The mainstream transaction price for drawing materials in Shandong province was between 6060-6270 RMB/ton, including tax, ex-factory; the mainstream transaction price for injection materials was between 6050-6450 RMB/ton, including tax, ex-factory; and the mainstream transaction price for fiber materials was between 6230-6430 RMB/ton, including tax, ex-factory.

East China Market: On December 15th, the Yuyao PP market prices rose from a low level, with macro benefits driving the futures focus to recover. Merchants increased their offers accordingly, but actual transactions struggled to expand significantly. In East China, the mainstream transaction price for raffia grade was between 6,130-6,300 yuan/ton, tax included ex-factory. The mainstream transaction price for injection molding grade was between 6,300-6,350 yuan/ton, tax included ex-factory. The mainstream transaction for fiber grade was between 6,270-6,380 yuan/ton, tax included ex-factory.

South China Market: On December 15, the Xiamen PP market price temporarily stopped falling, with prices rising from a low level, and. The mainstream transaction price for drawing materials in South China is between 6,210-6,450 RMB/ton, including tax, ex-factory; the mainstream transaction price for injection molding materials is between 6,400-6,590 RMB/ton, including tax, ex-factory; and the mainstream transaction price for fiber materials is between 6,610-6,700 RMB/ton, including tax, ex-factory.

Market Forecast: In the morning, the futures market showed an upward fluctuation, coupled with macro policy support, leading to an improved market sentiment. Some manufacturers attempted to raise their ex-factory prices; however, downstream orders remained limited, resulting in a fierce tug-of-war on the supply and demand side. It is expected that in the next working day, the polypropylene market prices will continue to weaken, with a price decline range of 0-15 yuan/ton.