The national market trend of PP in mid January was rather stable, with some brands down. As of January 19, the main offer price of T30S by domestic producers and traders was about 7,516.67 RMB / ton, down 1.53% from the beginning of the week.

Upstream aspect, the market price of national propylene (Shandong) was generally stable this week. Influenced by the international crude oil, the national propylene price rebounded from the bottom at the end of December, rising continuously. At present, the market price is settled about 6,850-7,300 RMB / ton, and the mainstream price is 7,150-7,200 RMB / ton. Recently, some domestic and foreign dehydrogenation units have been shut down to reduce the load, and the supply is still tight.

On the upstream side, the recent international crude oil price is unstable, with a significant decline. But recently the crude oil price has picked up slightly, which has a certain impact on the propylene market. In general, the crude oil market has a limited range of changes.

On the other hand, the downstream operating rate also declined slightly. However, the shutdown situation of the unit is still the same, and the supply is still tight. So it is expected that the propylene market will be relatively cold in recent days, and the price will be mainly stable.

Product aspect, this week's high propylene market slightly rebound slightly. The cost side of PP support is OK. Near the Spring Festival, national petrochemical plants are actively reducing inventory and the price reduced.

Two oil has inventory low. Market demand is decreasing with the end of pre festival replenishment. The quotation of merchants is loose. Some of them started to pre sell the goods after the festival. The downstream is preparing to stop work for holidays, and the terminal delivery is light.

The market performance is calmer and there is a phase of contradiction between supply and demand before the festival. This week, PP is  weak sideways. Spot prices decreased.

Market Forecasting aspect, PP analyst of SunSirs thinks national PP spot market is weakly sideways in January. The upstream propylene market is acceptable, which has certain support for the cost side. The stock up of downstream plants before the festival is basically finished, and petrochemical plants actively reduce inventory and price before the festival. The company sells or starts to pre sell at a profit. The quotation is loose and the profit room reduced.

It is expected that PP market will enter a stable stage before the festival in the near future. It is suggested to pay close attention to the change of propylene market at the cost end in the near future.

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