[pp morning briefing] short-term momentum for polypropylene market insufficient

1 On August 12, the market continued to focus on the meeting between the leaders of the U.S. and Russia, with geopolitical tensions expected to ease further, leading to a drop in international oil prices. NYMEX crude oil futures for the September contract fell by $0.79 to $63.17 per barrel, a decrease of 1.24% compared to the previous period. ICE Brent crude futures for the October contract fell by $0.51 to $66.12 per barrel, a decrease of 0.77% compared to the previous period. China's INE crude oil futures for the September 2510 contract rose by 2.5 to 492.6 yuan per barrel, while the night session saw a drop of 1.8 to 490.8 yuan per barrel.

2 On August 12, the propylene FOB Korea price remained at 745 USD/ton, and the CFR China price remained at 780 USD/ton.

3 This week (20250801-0807), the average operating rate of the domestic polypropylene downstream industry increased by 0.50 percentage points compared to last week, reaching 48.90%.

Core logic: Limited market driving forces, polypropylene market remains volatile.

2. Price List Form

3. Market Outlook

Recently, with the shutdown of units such as Guangdong Petrochemical's production line, Dushanzi's old production line, and Lankong Petrochemical, the impact of shutdowns has increased to 16.15%, temporarily easing supply pressure. After the start of autumn, temperatures have somewhat decreased, leading to improved operations downstream, but the overall market's ability to absorb goods remains weak, and inventory pressure persists. In the short term, the polypropylene market lacks upward momentum, and the mainstream price for East China's raffia is expected to fluctuate around 7000-7150 yuan/ton today.

4. Data Calendar