[Recycled PP Morning Brief] Supported by cost factors at the bottom, it is expected that today's market may mainly stabilize and consolidate.

I. Focus Points

1. Crude Oil: 3/3: The market is concerned that the additional tariffs imposed by the United States may drag down the global economy and demand, and it remains uncertain whether OPEC+ can postpone its production increase plan, leading to a decline in international oil prices. NYMEX crude oil futures for April fell $1.39 to $68.37 per barrel, a decrease of -1.99% month-over-month; ICE Brent oil futures for May (after the contract rollover) fell $1.19 to $71.62 per barrel, a decrease of -1.63% month-over-month. The main contract of China's INE crude oil futures 2504 dropped 3.3 to 539.2 yuan per barrel, and further declined 12.7 to 526.5 yuan per barrel during the night session.

2. Polypropylene: Futures opened lower with slight upward fluctuations. In the morning, the market quotations were mainly stable, with some local prices increasing by 10 yuan per ton. At the beginning of the month, the ex-factory prices were firm, locking in the market quotations. Despite the continuous lack of follow-up orders from downstream and merchants' concerns over the demand outlook due to increased tariffs, there is an expectation for favorable policies to be announced soon, which gives the market some hope. Traders are mainly maintaining firm quotations. As of midday, the mainstream price of drawing filament in East China was between 7340-7450 yuan per ton.

3. BOPP: PP futures fluctuated and adjusted, while the spot market remained mostly stable. Most petrochemical ex-factory prices were steady, providing relatively stable cost support. Film manufacturers also maintained stable ex-factory prices, and traders kept their prices stable. Overall, the market showed weak inquiry intentions.

II. Market Outlook

The prices of recycled PP remained stable, with downstream buyers purchasing as needed. The market trading atmosphere was subdued, and upstream raw material supplies were limited and expensive, providing bottom-line support on the cost side. Recycled enterprises maintained firm and stable quotations, mainly fulfilling orders from regular customers. It is expected that today's market will mainly remain stable, and it is recommended to closely monitor changes in upstream supply and downstream demand.