Daily Review: Polypropylene (PP) Pellet Market Continues to Weaken, Terminal Demand Recovery Below Expectations

On October 22, the average market price of polypropylene granules was 6,554 yuan/ton, down 24 yuan/ton from the previous working day, a decrease of 0.36%. Today, the mainstream market transaction price of polypropylene granule wire drawing is between 6,500-6,650 yuan/ton. The domestic mainstream market trend prices continued to decline weakly. Downstream manufacturers have limited new orders and mainly purchase based on rigid demand. Terminal demand has not recovered as expected, and the inventory in the industry chain remains high, putting pressure on market sentiment.

North China Market: On October 22nd, the PP prices in the Linyi market were weakly adjusted. The recovery of orders on the demand side was slow, and downstream purchasing enthusiasm was average, resulting in weak trading in the market. Reference prices: Yulong Petrochemical T30S (raffia) quoted at 6530 yuan/ton, Shenhua Ningxia Coal 1102K (raffia) quoted at 6460 yuan/ton (-60), China Coal Mengda L5E89 (raffia) has no quotation, Baofeng Energy V30G (homopolymer injection molding) quoted at 6580 yuan/ton, Dushanzi Petrochemical K9928H (high melt copolymer) has no quotation, Shenhua Ningxia Coal K8003 (copolymer) quoted at 7000 yuan/ton, Dushanzi Petrochemical TF1007 (pipe material) quoted at 7280 yuan/ton.

East China Market: On October 22, the PP market in Yuyao showed mixed price trends, with the market continuing to stabilize. Traders reported prices based on their own situations, and actual transactions were light. Reference prices are as follows: Zhenhai Refining PPH-T03 (for spinning) quoted at 7000 RMB/ton, Hengli Petrochemical L5E89 (for spinning) at 6550 RMB/ton (+20), Guoneng Ningmei 1102K (for spinning) at 6600 RMB/ton, Zhongmei Yulin L5E89 (for spinning) at 6550 RMB/ton, Ningbo Taiwan Plastics 5090T (transparent material) with no quotation, Donghua Energy S2025 with no quotation, Shenhua Ningmei 1102K (for spinning) at 6600 RMB/ton, Zhong'an United T03 with no quotation, and Zhejiang Petrochemical K8009 (copolymer) at 6950 RMB/ton.

South China Market: On October 22, the Xiamen PP market saw little adjustment, with a slight price increase. The market reported weak fluctuations, and actual transaction prices are negotiable. Reference prices: Fujian United T30S (fiber) quoted at 6580 yuan/ton (-20), Fujian United 1100N (homopolymer injection) quoted at 6680 yuan/ton, Sinochem Quanzhou L5E89 (fiber) quoted at 6550 yuan/ton (-30), Guangdong Petrochemical L5E89 quoted at 6600 yuan/ton, Gulei Petrochemical PPH-M17 (thin-walled injection) quoted at 6660 yuan/ton, Zhongjing Petrochemical V30G (homopolymer injection) quoted at 6590 yuan/ton (+10), Fujian United TM7000H quoted at 6820 yuan/ton (-40), and Hainan Ethylene K8003 (copolymer) has no quotation.

Market Forecast: Terminal market demand is weak, downstream manufacturers are purchasing on a just-needed basis. Some coal-based enterprises have raised their quotes, and traders are following the market trend, with actual transactions dominating the market. It is expected that polypropylene market prices will continue to weaken on the next working day, with price declines ranging from 1-10 yuan/ton.