Hengtai Futures: PP Market's Inventory Pressure Remains Evident, Short-Term Maintains Fluctuation

On September 19, according to the Financial Times, U.S. senators are seeking to increase financial pressure on Russia, targeting Moscow's energy exports. A new bill set to be submitted on Friday will significantly expand U.S. sanctions against Russia's "shadow fleet" of oil tankers—since the outbreak of the Russia-Ukraine conflict in 2022, Moscow has been using this fleet to evade Western restrictions on its energy sector. Revenues from these crude oil exports have become one of the sources of funding for Moscow's actions. "Shadow" tankers are often older vessels with hidden ownership information, making enforcement of sanctions more challenging. However, it has been shown that sanctions targeting these vessels themselves are effective. Meanwhile, EU ambassadors are scheduled to hold a meeting on Friday afternoon in Brussels to discuss a new round of sanctions proposed by the European Commission, which targets both Russian oil and gas production.

The U.S. Department of Commerce announced measures against diphenylmethane diisocyanate originating from China.MDIMake a translation of the above content.Anti-dumpingPreliminary affirmative ruling.

In the preliminary anti-dumping ruling announcement, the U.S. Department of Commerce determined that the dumping margin for Chinese MDI is as high as 511.75%. From the date of the preliminary anti-dumping ruling announcement, the U.S. Department of Commerce will instruct U.S. Customs and Border Protection (CBP) to collect temporary anti-dumping duties in the form of cash deposits based on the dumping margins of the relevant involved producers/exporters.

Recently,Lianhong New Science and Technology stated in response to investors' inquiries that the company's photovoltaic-related products mainly include EVA and POE photovoltaic film materials. The existing EVA production capacity exceeds 150,000 tons per year, with a new 200,000 tons per year facility planned to be operational by the end of 2025. A 100,000 tons per year POE facility is also planned to be completed and handed over by the end of 2025. This capacity layout actively responds to the urgent demand for key encapsulation materials in the global photovoltaic industry.

Recently, Wanhua Chemical Group (Penglai) High-Performance Materials Co., Ltd. announced the 220,000 tons/year SEP project. The project will useThe ethylene integration project at Wanhua Yantai Industrial Park produces raw materials such as styrene, butadiene, methyl methacrylate, and butyl acrylate. It utilizes Wanhua's proprietary emulsion grafting - bulk SAN blending process to manufacture ABS and ASA. Once completed, it will produce 200,000 tons/year of general-purpose ABS and 20,000 tons/year of ASA materials.

Fundamentals/Market: The pressure from new capacity expansion is being concentrated and released, while short-term demand is slowly following up. However, with supply growth far exceeding demand growth, the pressure for destocking in the market remains significant. At the beginning of the month, the policy side focused on the impact of the September Federal Reserve interest rate cuts, and domestic monetary easing policies have somewhat alleviated market funding pressures. However, whether terminal orders can continue to follow up remains the biggest focal issue. The market fundamentals are entangled in a tug-of-war with macroeconomic factors.