The polypropylene market stabilized after a decline in January. At the beginning of the month, after the New Year holiday, the inventory of two types of oil has accumulated significantly. Petrochemical and PetroChina have successively lowered their ex factory prices, leading to an increase in low-end spot market quotations. Traders have a strong pessimistic attitude, and some merchants have reversed their shipments; The domestic temporary maintenance equipment on the supply side has decreased, and the overall maintenance loss has decreased month on month; Downstream factories have strong expectations for early holidays, with a slight decline in operating rates compared to before. Enterprises have a low willingness to proactively stock up and are relatively cautious in accepting orders; In the mid to late period, PP futures stopped falling and rebounded, and the market's panic mentality slightly eased; The inventory of two types of oil has rapidly fallen, and production enterprises are supported by costs, with most of them raising prices. However, downstream factories face difficulties in consuming high priced raw materials, and their export efforts are limited. Business owners still have concerns about future demand, leading to a consolidation of the PP market in the short term. As of the close, the mainstream offer for wire drawing was 7320-7450 yuan/ton, a decrease of 110-100 yuan/ton compared to the previous month; The mainstream offer of Gongju is 7400-7580 yuan/ton, a decrease of 70 yuan/ton compared to the previous month.
Recently, there has been little change in the factory prices of petrochemical and PetroChina enterprises, and there is some support in the cost side; Approaching the end of the month and the end of the year, there is a strong expectation of early holiday in the downstream, and factories are not willing to actively stock up, so they are relatively cautious in accepting orders. In addition, the polypropylene market will still face high supply and low profits in the later stage, which will form a certain pressure on the spot market prices, and the competition for domestic general materials will also be more intense; In February, there were relatively few domestic petrochemical maintenance enterprises, and supply pressure still existed; The follow-up of new orders for downstream and terminal demand is limited, and market trading volume will gradually decrease. Overall, it is expected that the PP particle market will experience a weak performance after a stalemate and consolidation in February.
Post time: Jan-29-2024