【Recycled PP Morning Brief】Companies are selling based on market conditions, and the recycled PP market is expected to remain stagnant and consolidate.

1. Focus points

On March 26, U.S. crude oil and refined oil inventories declined, coupled with unstable geopolitical situations, leading to an increase in international oil prices. NYMEX crude oil futures for May rose by $0.65 to $69.65 per barrel, a week-on-week increase of 0.94%; ICE Brent crude futures for May increased by $0.77 to $73.79 per barrel, a week-on-week rise of 1.05%. China's INE crude oil futures main contract for May 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. Polypropylene: Futures opened higher and fluctuated downward. With the support from costs like crude oil and propylene diminishing, traders are lowering their offers. In terms of receiving goods, the slight peak in demand in March did not meet expectations, leading to a lack of enthusiasm from downstream factories for purchasing, resulting in weak actual transactions. As of midday, mainstream prices for wire drawing in East China are between 7280-7430 yuan/ton.

3. BOPP: PP futures are oscillating within a range, while the spot market is adjusting steadily by 10-50 yuan/ton. Petrochemical factory prices are mostly stable for sales, with cost support remaining relatively stable. The ex-factory prices for film companies are mostly stable, with a few companies making slight adjustments of 50-100 yuan/ton. In some regions, market prices have slightly decreased by about 100 yuan. Downstream sentiment is quite cautious, with downstream companies maintaining low-price orders.

II. Market Outlook

The recycled PP market is relatively stable, with downstream demand entering the market. The trading atmosphere is subdued, and market participants remain cautious, with low inquiry and purchasing sentiment, mostly maintaining small orders for essential needs. The prices in the virgin material market are weakly adjusting, which suppresses the sales pace of recycled materials. Companies are selling according to market conditions. It is expected that today's market will remain in a stalemate and consolidation. It is advised to closely monitor changes in upstream supply and downstream demand.