1、Today's Summary

①、Crude Oil: 3/4: The U.S. tariff policy has sparked potential trade dispute risks, coupled with OPEC+ announcing a slight increase in production from April, leading to a decline in international oil prices.

②、PP Market: As of midday, the mainstream price for drawing in East China is between 7340-7450 yuan/ton.

2、Spot Overview

Taking Shandong as the benchmark, the price of high-quality white transparent first-grade granules today closed at 5900 yuan/ton. The market price trend remains stable and organized, in line with early expectations. Upstream raw material supplies are tight, increasing procurement costs for enterprises. Enterprises are holding firm on their quotations, and the gap between new and old material prices is below the reasonable range, suppressing the momentum for recycled materials to rise. Recycled material companies are flexibly scheduling production, being cautious in transactions, and focusing more on negotiations for actual orders.

3、Production Dynamics

This week, the capacity utilization rate of the recycled PP market continued to show a slight increase. With the arrival of the peak season, downstream product companies have seen a gradual increase in orders, and the atmosphere for purchasing raw materials is still acceptable. However, downstream buyers are cautious about high-priced resources, resulting in a strong market observation sentiment. Recycled material companies are flexibly scheduling production and reasonably controlling inventory. It is expected that the capacity utilization rate of the recycled market will slightly increase next week. As of February 27, the capacity utilization rate of sampled recycled PP enterprises was at 24%.

4、Price Forecast

The market price trend of recycled PP mainly operates steadily. With the arrival of the peak season, downstream demand is gradually being released, improving the inquiry atmosphere for raw materials. However, the market quotation trend is firm, and buyers are cautious, mostly maintaining just-in-time purchases. Orders within the market are slowly increasing, but the market price trend for new materials is relatively weak, with the gap between new and old material prices falling to a low level. Recycled material companies are adjusting shipments and production schedules flexibly, with a focus on negotiating actual orders. It is expected that the short-term market trend may continue to be adjusted, and it is recommended that companies make just-in-time purchases.

5、Related Product Situation

PP Market: Today's futures showed a weak fluctuation during the day. Downstream demand did not see any significant changes, only maintaining just-in-time purchases, with limited order increases. Traders are operating according to the market, and the overall trading atmosphere is calm, with no major fluctuations in spot prices. As of midday, the mainstream price for drawing in East China is between 7340-7450 yuan/ton.