PP Daily Review: Polypropylene Market Continues to Rise

1. Today's Summary

Today's Summary

Mainstream companies have raised PP prices: In the Southwest region of Sinopec, prices for drawing materials have increased by 100 yuan/ton, film materials by 50 yuan/ton, and low melt copolymer materials by 50 yuan/ton. Lanxian RP340R has risen by 100 yuan/ton. In East China, Sinopec's Zhenhai Refining & Chemical has raised the price of drawing material T03 from 6600 yuan/ton to 6650 yuan/ton (an increase of 50 yuan/ton). Medium and high melt copolymer materials have gone up by 100 yuan/ton, with M09 and M30RH both rising from 6550 yuan/ton to 6650 yuan/ton. High melt fiber material Y40 has increased from 6550 yuan/ton to 6600 yuan/ton (an increase of 50 yuan/ton).

Today, the domestic polypropylene plant shutdown impact remains unchanged from yesterday, maintaining at 18.60%. In terms of plant dynamics, Lihe Zhixin's 300,000 tons/year PP plant has restarted. In terms of product structure, the daily production proportion of wire drawing materials has dropped by 1.42 percentage points to 25.22%.

The supply-demand gap for polypropylene widened this week, primarily due to an increase in temporary shutdowns and equipment malfunctions, leading to a reduction in supply. On the demand side, driven by essential needs and a rising market trend, purchasing activity was temporarily active, and demand performance was decent. The widening supply-demand gap provided strong support for market prices.

Spot Overview

Table 1 Summary of Domestic Polypropylene Prices (Unit: Yuan/Ton)

3.Price Prediction

Geopolitical instability persists, international oil prices rise to boost market sentiment, and cost support strengthens. It is expected that the polypropylene market will remain relatively firm tomorrow.