[pp daily review] market sentiment cautious, polypropylene prices fluctuate

1 Today's Summary

①、 Sinopec Central China PP partial adjustments: Changling MN70 increased by 50 to 7350; Sino-Korean K8009 decreased by 50 to 7250; Changling F03G and Jingmen F03D decreased by 50 to 7200 and 7250, respectively.

②、 The domestic polypropylene shutdown impact today decreased compared to yesterday. 1.50% To 15.15% "The daily production proportion of wire drawing increased compared to yesterday." 0.10% In 29.67% % The daily production proportion of low-melting copolymer remains unchanged compared to yesterday. 5.10% 。

③、 （ 20250725-0731 In this period, the supply-demand balance remains in a state where supply exceeds demand, with the supply-demand gap maintaining a positive value and slightly widening. This has a somewhat negative impact on market sentiment. In the next period, the surplus in the supply-demand balance is expected to significantly widen, likely exacerbating the negative impact on prices. 。

2 Spot Overview

Table 1 Domestic Polypropylene Price Summary (Unit: RMB/ton)

Data Source:Longzhong Information

Based on the East China region, today's polypropylene wire drawing closed at 7,069 RMB/ton, an increase of 13 RMB/ton from yesterday. The national average price for wire drawing is 7,099 RMB/ton, an increase of 3 RMB/ton from yesterday, in line with the morning forecast. 。

Today, futures are experiencing strong fluctuations, and spot market prices are mixed. Macro-level positive factors are boosting the market; however, terminal follow-up is slow. Trade offers are being adjusted within a narrow range, with overall volatility being limited. As of the midday close, the mainstream price for East China wire drawing is at... 7020-7200 Yuan / Ton 。

3 Futures-spot basis

From the basis perspective, today the basis of polypropylene in the East China region is -15 Yuan / ton, decreased compared to yesterday 5 Yuan / Ton; basis in North China is -2 Yuan / Ton, decreased compared to yesterday 7 Yuan / Ton.

4 Production Dynamics

Polypropylene Capacity Utilization Rate 78.22% Compared to yesterday, an increase of 0.56% The profit from oil processing increased compared to yesterday. 58.4 Yuan / Ton in -248.35 Yuan / Ton.

5 Market sentiment

The macro favorable policies have limited boosting effect on the market, as the weak terminal demand has significantly dragged down the circulation of raw materials. There is no improvement yet in downstream orders, and market sentiment remains cautious. 。  

6 Price prediction

From the supply side, the maintenance loss continues to remain high, which to some extent offsets the pressure from the increased supply due to the release of new production capacity. However, the market demand remains weak and has not fundamentally improved. The recovery of demand still requires time for verification, and the contradiction in the supply-demand fundamentals still exists. In the short term, there is insufficient momentum for polypropylene prices to rise, and prices are expected to remain at tomorrow. 7020-7200 Yuan / Ton range oscillation.

7 ==related product information

Table 2 Summary of Prices of Polypropylene Related Products (Unit: Yuan/Ton)

8 Data Calendar

Table 3 Overview of Domestic Polypropylene Data (Unit: 10,000 tons)