SunSirs: Resumption of work improves PP's shock (2.17-2.27)

1. Price Trend

According to the data monitored by SunSirs, the domestic PP market has fluctuated in the second half of February, and recent spot prices have risen and fallen. As of February 27, the mainstream offer price of T30S from domestic manufacturers and traders was around 6933.33 yuan/ton, a 1.22% drop from the average price in the second week of February.

2. Factor Analysis

Upstream: According to the data of the business associations, the recent domestic propylene market has bottomed out and rebounded. In terms of raw materials, there has been little change in the crude oil market, but it has been continuously adjusted for many days. Upstream plants still have many units shut down for maintenance. Supply is difficult to recover in the short term, and propylene production is small. However, terminal manufacturers have begun to resume work and logistics and transportation have resumed. Demand for propylene has increased significantly, and PP futures have continued to rise, and downstream has promoted procurement. Therefore, it is expected that the propylene market price may continue to rise in the near future.

Products: The propylene market rebounded this week, and the cost side has some support for PP. Domestic logistics is also gradually recovering. At present, the producers are consuming the inventory smoothly. The pressure on the petrochemical plant inventory has been eased, and the confidence of the industry has been boosted. On the demand side, downstream factories have resumed work, increasing the operating rate of manufacturers and replenishment. Manufacturers and distributors have a sound mindset, and it is acceptable to take orders.

3. Future Forecast

SunSirs' PP analyst believes that this week's domestic PP spot market is showing first suppression and then rising. The upstream propylene price has bottomed out and has certain support for the cost side. The resistance to limited logistics transportation is small, and the resumption of work at downstream factories has accelerated. Demand has improved, inventory at petrochemical plants has decreased, and operators have followed the market and kept orders steady. It is expected that the recent PP market may continue to adjust in a narrow range, and it is recommended to pay close attention to the cost-side propylene market.

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