I. Focus Points

3/21: The market believes that the Asian economy and demand are expected to improve, and the instability in the Middle East still brings potential supply risks, leading to an increase in international oil prices. NYMEX crude oil futures for May contract rose by $0.21 per barrel to $68.28, up 0.31% month-over-month; ICE Brent crude oil futures for May contract increased by $0.16 per barrel to $72.16, up 0.22% month-over-month. China's INE crude oil futures main contract for 2505 rose by 9.3 to 531.3 yuan per barrel, and in the night session, it increased by 4.4 to 535.7 yuan per barrel.

2, Last week, the polypropylene market did not change much. Due to unstable geopolitical situations, the potential supply risks of crude oil increased, leading to a rebound in oil prices and a recovery in the overall market sentiment. Fundamentally, with multiple facilities undergoing temporary shutdowns, the operating rate of polypropylene production capacity fell to a relatively low level. The pressure from new capacity expansions was offset by maintenance activities, temporarily alleviating supply pressures; demand remained stable, with domestic demand still under pressure while export opportunities continued to be open. Overall, as concerns over crude oil diminished and the fundamental situation improved, polypropylene entered a short-term consolidation phase under a pattern of reduced supply and steady demand. As of the 20th, the national average price for drawing yarn stood at 7,325 yuan/ton, down 20 yuan/ton from last week, representing a decrease of 0.27%.

3, Last week, BOPP prices stabilized with a downward trend. As of March 20th, the mainstream price for thick glossy film in East China was 8600-8800 yuan/ton, remaining unchanged from the previous period. International crude oil prices adjusted within a range, PP futures slightly declined, and the spot market mostly fell. The ex-factory prices of petrochemicals also adjusted, weakening cost support. Film manufacturers' ex-factory prices partially decreased by 50-100 yuan/ton. Traders mostly maintained stable prices for sales, but actual transactions involved small discounts.

Three, Market Outlook

The overall fluctuation of the recycled PP market price is not significant, with downstream purchases made according to demand. The market sentiment is predominantly watchful, and the increase in orders for downstream product enterprises is limited, leading to a lukewarm trading atmosphere. The price trend of new materials is on the weaker side, with the price gap between new and old materials fluctuating at a low level, which restrains the shipping speed of recycled materials. Recycled material enterprises are cautious in their operations, with actual transactions mainly based on negotiations. It is expected that the short-term market trend may continue to consolidate, requiring close attention to the downstream demand situation.