According to the Commodity Market Analysis System of Shengyi Society, the PP market fluctuated and consolidated in early March, and the price adjustment range of most brand products was relatively narrow. As of March 11th, the mainstream offer price for wire drawing by domestic producers and traders is around 7525 yuan/ton, with an increase or decrease of+0.11% compared to the price level at the beginning of March.
price trend
In terms of raw materials:
In terms of remote upstream crude oil, in early March, with the easing of the geopolitical situation between Russia and Ukraine, the market’s concerns about reduced demand for crude oil expanded. Combined with the high inventory of US crude oil in the early stage, the crude oil market was suppressed by various factors, and the price position became loose. In early March, the price of propylene was at a temporary low, and downstream suppliers increased their supply, resulting in a gradual recovery of prices within ten days. The overall inventory of propane in China has increased, and there is a lack of active guidance on the market, with prices mainly following the decline of crude oil. Overall, the PP raw material market showed mixed ups and downs in early March, providing moderate support for PP costs.
Supply side:
In early March, the load of domestic PP enterprises increased narrowly, and the market supply remained abundant. Overall, the industry’s overall load level has rebounded to over 81% compared to 79% at the end of February, and the domestic weekly average production has increased to 770000 tons. The production capacity is still in the blank stage within ten days, and the maintenance and resumption of work of PP plants in the future are intertwined. From the results, it is expected that the change in shipment volume will be limited, and the supply side’s support for PP spot prices is still relatively weak.
In terms of demand:
In early March, there was limited improvement in the demand side of PP, and on-site trading remained at the level of essential demand. The consumption level of woven bags such as fertilizers, cement, and rice in terminal enterprises is showing signs of recovery. With the warming of temperatures, the demand for PP has also increased in fields such as construction and agriculture. But currently, the market’s new orders are generally small and there has been no significant increase in volume. However, exports have been hindered by tariffs, and overall, the demand side has shown insufficient momentum.
Future forecast
In early March, the domestic PP market prices were mainly consolidating. From a fundamental perspective, the overall performance of upstream raw materials in supporting PP is poor, with industry supply increasing slightly at a high level, consumption slowly recovering, and the market returning to a supply-demand game pattern. In the short term, the PP price market may still be under pressure and consolidation.
| http://www.thiourea.net |