【PP Morning Alert】Factories have a low acceptance of high-priced raw materials, and the PP market is showing a strong fluctuation.

On March 26, U.S. crude oil and refined product inventories decreased, coupled with geopolitical instability, leading to an increase in international oil prices. NYMEX crude oil futures for the May contract rose by $0.65 to $69.65 per barrel, a week-on-week increase of 0.94%. ICE Brent crude futures for the May contract increased by $0.77 to $73.79 per barrel, a week-on-week increase of 1.05%. China's INE crude oil futures for the main contract 2505 rose by 2.1 to 539.4 yuan per barrel, with a night session increase of 3.5 to 542.9 yuan per barrel.

2. On March 26: The FOB price of acrylic in Korea remains stable at $800/ton, while the CFR price in China has increased by $10 to $830/ton.

3. On March 26: Haiwei Petrochemical (300,000 tons/year) PP unit restarts. Langgang Petrochemical (110,000 tons/year) PP unit is undergoing maintenance shutdown.

On March 27, it was reported that the inventory of two oils and polyolefins was 710,000 tons, a decrease of 15,000 tons compared to yesterday.

Core logic: Supported by high costs and maintenance, polypropylene prices remain strong.

Price List

3. Market Outlook

Affected by geopolitical events, international oil prices have risen, providing some support to the market. Recently, a集中检修 of facilities has led to a parking impact, with daily production affected accounting for about 17.5%, resulting in low capacity utilization. In the short term, there is not much supply pressure. Downstream factories have a general follow-up on new orders, and demand is difficult to sustain, coupled with factories' low acceptance of high-priced materials, which may suppress the upward price potential from the demand side. It is expected that the polypropylene market will show a strong fluctuation today, with the mainstream price for wire drawing in East China ranging from 7300 to 7430 yuan/ton.

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