In June 2024, China's plastic product production was 6.586 million tons, showing a downward trend compared to the same period last year. Due to fluctuations in international crude oil prices, the prices of plastic raw materials have risen, resulting in an increase in production costs for plastic product companies. In addition, the profits of product companies have been somewhat compressed, which has suppressed the increase in production scale and output. The top eight provinces in terms of product production in June were Zhejiang Province, Guangdong Province, Jiangsu Province, Fujian Province, Shandong Province, Hubei Province, Hunan Province, and Anhui Province. Zhejiang Province accounted for 18.39% of the national total, Guangdong Province accounted for 17.29%, and Jiangsu Province, Fujian Province, Shandong Province, Hubei Province, Hunan Province, and Anhui Province accounted for a total of 39.06% of the national total.
The polypropylene market experienced weak fluctuations after a slight increase in July 2024. At the beginning of the month, coal enterprises conducted centralized maintenance, and prices remained relatively firm, narrowing the price difference between oil-based and coal based products; In the later stage, with the spread of negative news, the market situation in the market declined, and the prices of oil and coal companies fell. Taking Shenhua L5E89 as an example in North China, the monthly price ranges from 7640-7820 yuan/ton, with a decrease of 40 yuan/ton in the low-end compared to the previous month and an increase of 70 yuan/ton in the high-end compared to the previous month. Taking the T30S of Hohhot Petrochemical in North China as an example, the monthly price ranges from 7770-7900 yuan/ton, with a 50 yuan/ton decrease in the low-end compared to the previous month and a 20 yuan/ton increase in the high-end compared to the previous month. On July 3rd, the price difference between Shenhua L5E89 and Hohhot T30S was 80 yuan/ton, which was the lowest value of the month. On July 25th, the price difference between Shenhua L5E89 and Hohhot T30S was 140 yuan/ton, which is the highest price difference of the whole month.
Recently, the polypropylene futures market has weakened, with petrochemical and CPC companies successively lowering their ex factory prices. Cost side support has weakened, and spot market prices have fallen; As domestic production enterprises stop for maintenance, the amount of maintenance losses gradually decreases. In addition, the economic recovery of the polypropylene market is not as expected, which to some extent exacerbates the supply pressure; In the later stage, it is expected that the number of planned maintenance enterprises will decrease and the output will increase; The downstream order volume is poor, the enthusiasm for speculation in the spot market is not high, and the clearance of upstream inventory is hindered. Overall, it is expected that the PP pellet market will remain weak and volatile in the later stage.
Post time: Aug-12-2024