【PP Morning Forecast】With no significant improvement in demand, the polypropylene market is expected to remain range-bound today.

I. Focus Areas

On March 25, the Russia-Ukraine negotiations continue to advance, but the situation in the Middle East remains uncertain, leading to fluctuating international oil prices. NYMEX crude oil futures for May settled at $69.00, down $0.11 per barrel, a decrease of 0.16%; ICE Brent crude futures for May settled at $73.02, up $0.02 per barrel, an increase of 0.03%. The main contract for China's INE crude oil futures (2505) rose by 4.0 to 537.3 yuan per barrel, and in the night session, it increased by 1.3 to 538.6 yuan per barrel.

2. On March 25: Acrylic FOB Korea remains stable at $800/ton, while CFR China has dropped by $5 to $820/ton.

March 25: Details of domestic PP maintenance changes: Yulong Petrochemical Line Five (300,000 tons/year) has stopped production for maintenance. Beihai Refining and Chemical (200,000 tons/year) PP unit is also under maintenance.

Sinopec and Sinochem's polyolefin inventory was reported by LNG Network on March 26 to be 725,000 tons, a decrease of 25,000 tons from the previous day.

Lack of cost support and weak demand-supply dynamics leave the polypropylene market without sufficient driving force.

II. Price List

3. Market Outlook

International oil prices are at low levels, and with the increase in production from multiple facilities, the price of propylene has fallen, reducing the cost support for polypropylene. Fundamentally, during the period of concentrated maintenance, the utilization rate of polypropylene capacity has decreased. The pressure from new capacity is offset by the maintenance capacity, so the supply pressure remains manageable; demand has not shown significant improvement, but spot pressures have been alleviated as point pricing and export orders are gradually delivered. It is expected that the polypropylene market will remain range-bound today, with the mainstream price for拉丝in East China ranging from 7280 to 7430 yuan per ton.