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【PP Daily Review】Market momentum is insufficient; polypropylene prices fluctuate.

Longzhong 2025-03-26 17:11:04

1Today's Summary

1. Sinopec Central China PP price adjustments: Zhongyuan Luoyang drawing up by 50; Luoyang MN70 up by 50, fiber up by 30; Zhongyuan low melt copolymer and some transparent grades up by 50; Zhonghan 8003 and 8009 down by 50.

② As of today, the domestic polypropylene shutdown impact has decreased by 0.42% compared to yesterday, reaching 17.52%, mainly due to the restart of the Hebei Haiwei (300,000 tons/year) PP plant. The daily production ratio of injection molding grade has increased by 2.92% compared to yesterday, reaching 28.20%, while the daily production ratio of low melt index copolymer has increased by 0.81% to 11.16%.

③ The supply-demand gap narrowed significantly to 40,000 tons this week (20250307-0314). This is mainly due to an increase in plant maintenance leading to a notable decrease in supply, coupled with continued slow recovery in demand, resulting in an improvement in the supply-demand gap.

2. Spot Overview

As of today, the closing price for polypropylene fiber grade in the East China market was 7349 yuan per ton, a decrease of 3 yuan per ton from the previous day, which is in line with the early expectation.

Today's futures opened high and fluctuated downward.Cost support for propylene has weakened, and traders are offering more flexible quotes. In terms of purchases, due to the March demand peak falling short of expectations, downstream factories are not very enthusiastic about buying, resulting in weak actual transaction volumes. As of noon, the mainstream price for华东拉丝 (East China drawing silk) was between 7280-7430 yuan per ton.

3Spot-Futures Basis

Looking at the basis, the polypropylene basis in the East China region today is 25 RMB/ton, down 101 RMB/ton from yesterday; the basis in North China region is -37 RMB/ton, up 4 RMB/ton from yesterday.

4Production Dynamics

The utilization rate of polypropylene production capacity decreased from 76.38% to 76.40%, an increase of 0.02% compared to the previous day. The main reason is that the PP facility with a capacity of 300,000 tons/year owned by Beihai Wei has resumed operations. The oil-based spread dropped by 2 yuan per ton to -384.02 yuan per ton.

5Market sentiment

The supply side pressure for polypropylene is manageable, with concentrated maintenance shutdowns offsetting new capacity additions. On the demand side, PP downstream is in its peak season, but there are few亮点 to speak of. However, downstream raw material inventories are not high, providing strong support under low-cost conditions. Market sentiment remains cautious.

6Price Prediction

Since the peak season began, demand has remained weak overall, with insufficient new orders, and although downstream operations have slightly increased, they are not providing strong support to the spot market. On the supply side, the delay in the commissioning of most new facilities, coupled with high maintenance levels, has led to low capacity utilization rates. The博弈 between supply and demand still exists. It is expected that the short-term走势 will continue to be affected. (请补充或确认最后一句的完整表述，以确保翻译的准确性和流畅性。)Verify transactions around 7280-7420 yuan/ton, with a focus on changes in the supply and demand side as well as the cost side.

7Relevant product information

8. Data Calendar

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【PP Daily Review】Market momentum is insufficient; polypropylene prices fluctuate.

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