1Today's Summary

① Sinopec East China PP early month supplement: Yang F401 up 50 to 7700, 1215C down 50 to 7800, Zhen F08MX down 50 to 7800, M50RH down 50 to 8050. PetroChina South China PP reduction: Guangdong L5E59/7460, L5D98/7470, GH12M/7500, K8003/7620.

Today, the domestic polypropylene production loss decreased by 0.11% to 17.85%. There is no change in domestic PP maintenance facilities today. The daily production proportion of drawing decreased by 2.08% to 25.41%, mainly due to the conversion of the second line of Phase II of Dongguan Juzhengyuan to other products.

③、This week (March 7-14, 2025), the supply-demand gap has significantly narrowed to 40,000 tons, mainly due to an increase in equipment maintenance leading to a noticeable decline in supply, coupled with demand still gradually recovering, resulting in an improvement in the supply-demand gap.。

2Spot Overview

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

Data source: Longzhong Information

Taking the East China region as the benchmark, today the price of polypropylene wire drawing is 7369 yuan/ton, an increase of 8 yuan/ton compared to yesterday, in line with the morning's expectations.Futures were range-bound with a slightly bullish bias. Today, polypropylene prices remained stable with a minor increase. International oil prices continued to rise, strengthening cost support. Coupled with modest end-of-month sales pressure, spot offers probed higher. Market participants mostly followed the trend in their operations, with actual deals negotiated. By noon, the mainstream price for华东拉丝 (East China LDPE) ranged from 7,300 to 7,450 yuan per ton.。

3Futures basis

In terms of basis, the basis for the North China region today is -56 yuan/ton, down 5 yuan/ton from yesterday; the basis for the East China region is 18 yuan/ton, up 2 yuan/ton from yesterday.

4Production Dynamics

PolypropyleneThe capacity utilization rate increased from 75.71% to 76.22%, up 0.51% from yesterday. TodayThere are no changes in the domestic PP maintenance units.

5Market Sentiment

Recently, international oil prices have been continuously rising, enhancing cost support. The futures market is showing firmness, while the spot market has stabilized after declines. Downstream factories maintain their purchases at essential levels, providing limited demand-side support to prices. Trade merchants mostly adopt a cautious approach, offering discounts and selling at prevailing market rates.

6Price Prediction

The short-term international oil prices are on a downward trend, which is expected to weaken support for PP cost. On the demand side, downstream factories are gradually increasing their operational rates, but procurement remains relatively cautious, with a focus on replenishing low essential needs, providing limited support to the market. On the supply side, there are currently no new expansions, and the maintenance of production facilities is still relatively concentrated, so supply pressure is not significant. It is expected that the polypropylene market may maintain fluctuations next week, with mainstream prices for wire drawing in East China at 7300-7450 yuan/ton.。

7Product Information

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

8Data Calendar

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