【Regeneration PP Daily Review】Companies Maintain Stability, Focus on Negotiations for Actual Transactions

1Today's Summary

①、On March 25, the Russia-Ukraine talks continue to advance, but there remains uncertainty in the Middle East situation, leading to mixed fluctuations in international oil prices.

PP market: As of noon, the mainstream price in East China is 7280-7430 yuan/ton.

2Spot Overview

Based on the Shandong region, the price of high-quality transparent first-grade particles today is 5,850 yuan/ton. The market price trend is stable and consistent with this morning's expectations.The market is cautious in operations, with downstream demand driven by just-in-time procurement. Transactions are mainly focused on fulfilling orders from existing customers, and there are no clear positive signals in the short term. New order growth is slow, and actual transactions are based on negotiations.

3Production Dynamics

This week, the capacity utilization rate of the recycled PP market showed slight fluctuations. Downstream terminals maintained their purchase pace based on essential needs. The supply of upstream raw materials remained tight, but the cost side was dragged down by buyers' price pressure, reducing the support for recycled materials. Regenerated enterprises adopted a cautious attitude towards raw material procurement, and regenerated enterprises flexibly arranged production.

4Price Forecasting

The recycled PP market price remains stable with just a steady demand-driven trading activity. There has been no significant improvement in orders from downstream factories, resulting in overall weak demand and a lack of confidence, leading to a slow transaction rhythm in the market. The new material market is experiencing fluctuations, with the price gap between new and old materials remaining in a low range. Recycled enterprises have limited motivation for sales. It is expected that the market trend will stabilize and consolidate in the short term, and enterprises are advised to purchase based on their immediate needs.

5Related product information

PPMarket:Today, the futures opened high and fluctuated downward.With the cost support for propylene no longer in place, trade offers have loosened. Looking at the buying sentiment, due to the March demand peak falling short of expectations, downstream factories are not showing strong willingness to purchase, resulting in weak actual transaction volumes. As of noon, the mainstream price for华东拉丝 (East China Lasi) is between 7280-7430 yuan per ton.