[PP Morning Outlook] Polypropylene (PP) Market Expected to Trade Weakly Today

1. Focus Points

1 The instability of the Russia-Ukraine situation persists, coupled with the continued positive impact of the traditional fuel consumption peak season in the United States, leading to a rise in international oil prices. NYMEX crude oil futures for the October contract rose by $0.45 per barrel to $64.60, an increase of 0.70% compared to the previous period; ICE Brent crude oil futures for the October contract rose by $0.57 per barrel to $68.62, up 0.84% compared to the previous period. China's INE crude oil futures for the 2510 contract fell by 5.3 yuan to 481.1 yuan per barrel, but increased by 5.5 yuan to 486.6 yuan per barrel during the night session.

2 Propylene FOB South Korea is stable at 760 USD. / ton, CFR China remains stable. 790 USD / tons.

3 The average operating rate of polypropylene capacity this period was 80.00%, up 1.78% compared to the previous period; Sinopec's capacity utilization rate was 83.45%, down 0.39% compared to the previous period.

4 This week, domestic polypropylene production was 808,800 tons, an increase of 22,500 tons (2.86%) compared to last week's 786,300 tons. Compared to the same period last year (692,300 tons), it increased by 116,500 tons, a rise of 16.83%.

Core logic: Downstream orders have not shown significant improvement, and raw material stocking remains cautious. 。

2. Price List Form

3. Market Outlook

The production equipment maintenance of supply-side enterprises has decreased, and the shutdown impact has declined to 12.98%. Along with the increased production from CNOOC Daxie, supply-side pressure has increased. Downstream orders have not shown significant improvement, and the willingness for downstream stockpiling remains cautious. It is expected that today's polypropylene market will... Weak consolidation.

4. Data Calendar