【PP Daily Review】Supply Pressure Eases, Polypropylene Market Consolidates in Range

1. Today's Summary

①、China Oil SouthwestPP pricePartial downward adjustment: Sanmian CPP down by 50, Dushanzi TF1007 to 8250; Zhongrong copolymer down by 100, Lanhua SP179 to 8000.

②、 Today, the domestic polypropylene shutdown rate increased by 0.89% to 18.72%, primarily due to the maintenance shutdown of Yan'an Energy and Chemical's 300,000 tons/year PP unit. The first line of Dushanzi Petrochemical's 70,000 tons/year PP unit also underwent maintenance. The second line of Luoyang Petrochemical's 140,000 tons/year PP unit was shut down for maintenance. Additionally, the first line of Inner Mongolia Baofeng's 500,000 tons/year PP unit was down for maintenance. The daily production ratio of raffia decreased by 2.65% to 29.36%, while the daily production ratio of low melt copolymer dropped by 2.19% to 9.63%.

③. This week (20250321-0327), the supply-demand gap narrowed significantly to 35,100 tons, mainly due to a noticeable decrease in supply caused by increased maintenance of equipment, coupled with demand still being in a slow recovery phase, resulting in a reduced supply-demand gap. Improvement.

2. Spot Overview

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

Data source: Longzhong Information

Based on the East China region, the price of polypropylene raffia closed at 7,361 yuan/ton today, up 7 yuan/ton from last week, stronger than the morning expectation.

Today, the futures market experienced fluctuating upward movements during the session, with morning market quotations mainly steady and some showing slight increases. Crude oil price The price has risen, with cost support strengthening. The terminal maintains a focus on essential replenishment, and demand has not shown any significant changes. Market trading is quiet, with actual transactions being discussed. As of noon, the mainstream price for wire drawing in East China is 7300-7440 yuan/ton.

Figure 1: Price Trend of Polypropylene in China (Unit: Yuan/Ton)	Figure 2 Domestic polypropylene price trend chart by region (Unit: Yuan/Ton)
Data source:Dragon Treasure Information	Data Source: Longzhong Information

3. Futures-spot basis

In terms of basis, the polypropylene basis in East China today is 23 yuan/ton, down 20 yuan/ton from yesterday; in North China, the basis is -48 yuan/ton, down 27 yuan/ton from yesterday.

Figure 3 Basis Trend in North China Region (Unit: Yuan/Ton)	Figure 4 Basis Trend in the East China Region (Unit: Yuan/Ton)
Data source: Longzhong Information	Data source: Longzhong Information

4. Production Dynamics

The polypropylene production capacity utilization rate decreased from 76.42% to 74.46%, a drop of 1.96% compared to yesterday. The main reason is...Yan'an Energy and Chemical (300,000 tons/year) PP plant shutdown for maintenance. Line 1 of Dushanzi Petrochemical (70,000 tons/year) PP plant shutdown for maintenance. Line 2 of Luoyang Petrochemical (140,000 tons/year) PP plant shutdown for maintenance. Line 1 of Inner Mongolia Baofeng (500,000 tons/year) PP plant shutdown for maintenance.The oil processing profit decreased by 92 yuan/ton to -504 yuan/ton.

Figure 5 Domestic Polypropylene Capacity Utilization Trend Chart	Figure 6 Domestic polypropylene profit price trend chart (Unit: Yuan/Ton)
Data source: Longzhong Information	Data source: Longzhong Information

5. Market Sentiment

Two oil inventories have increased, and upstream entities continue to reduce their inventories. Recently, there has been an increase in maintenance shutdowns of facilities. The inventory pressure on petrochemical companies is still manageable. Terminal demand falls short of the expectations for peak season, and downstream orders are limited, resulting in low willingness to purchase. Traders are mainly focusing on active sales, leading to increased sales pressure.

6. Price Prediction

Today, multiple units were shut down, further reducing capacity utilization and alleviating supply-side pressure. In the short term, there has been no significant improvement on the demand side. Polypropylene price Forming pressure, operators are adopting a cautious procurement mentality, and transactions in the market are average. There is no clear guidance at present, and demand has become the main factor influencing price fluctuations. The upward momentum of spot prices is weak, and it is expected that tomorrow will be similar. Polypropylene Market Continue range consolidation.

7. Related Product Information

Table 2 Summary of Prices for Polypropylene-related Products (Unit: Yuan/Ton)

8. Data Calendar

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

Today, the domestic polypropylene shutdown impact increased by 0.89% to 18.72% compared to yesterday, mainly due to the shutdown and maintenance of Yan'an Energy and Chemical's (300,000 tons/year) PP unit. The first line of Dushanzi Petrochemical (70,000 tons/year) PP unit is also under shutdown and maintenance. The second line of Luoyang Petrochemical (140,000 tons/year) PP unit is undergoing shutdown and maintenance, along with the first line of Inner Mongolia Baofeng (500,000 tons/year) PP unit.The daily production proportion of wire drawing decreased by 2.65% compared to yesterday, reaching 29.36%, while the daily production proportion of low-melt copolymer decreased by 2.19% compared to yesterday, reaching 9.63%.