In early April domestic PP market price decline narrowed, with spot price fluctuating. As of Friday, April 3, the mainstream offer price of domestic producers and traders in T30S was around 6383.33 RMB/ton, 2.54% lower than the average daily price level of that in April 1.

Upstream: Propylene was affected by the OPEC meeting and the international market game last month, the international crude oil many times the news has a clear negative for propylene. And it will take time for news of the easing of the recent two-day oil price war to trickle down to propylene. Downstream factory profit margin is narrow, industry generally bearish, dragging propylene prices. Propylene this month will have more enterprises start work, and production increased. Propylene prices are expected to continue to explore the downward trend in recent days. 

Products: The domestic PP market as a whole this week to maintain a weak, but the international news positive crude oil, boosting the trend of PP futures market. However, the spot market early pressure, petrochemical plant inventory is high, and there are still offers to reduce. In addition, PP downstream factory general conditions of resumption of work, and the procurement inquiry atmosphere is not strong. Boosted by the futures, the confidence of the industry supports the beginning of the intention to support prices.

Market Forecast: SunSirs PP analysts think that in the early April domestic PP spot market was volatility. Upstream propylene prices also fell, the cost of PP support is poor. The rework rate of downstream factories needs to be further improved. Demand side has small transaction, still need to improve. The recent trend of PP futures stronger, to boost the spot market, the decline in the market therefore narrowed. PP market is expected to be the recent range of consolidation.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.