According to the Commodity Market Analysis System of SunSirs, the domestic PP market in the first half of May showed weak consolidation, with most brand products experiencing narrow price fluctuations. As of May 14th, the mainstream offer price for wire drawing by domestic producers and traders is around 7,440 RMB/ton, a decrease of -0.56% compared to the price level at the beginning of May.

In terms of raw materials: The previous US tariff policy had a huge impact on the global economy, and crude oil prices plummeted as a heavily affected area. At present, the US China talks have released many positive signals such as the suspension of tariffs, and crude oil prices have continued to rebound. At the same time, the decoupling of domestic propane trade is expected to be lifted, and the future price may fall. The cost pressure on PDH manufacturing enterprises may be reduced. The propylene market is strong due to the rise in raw materials, but the differentiation of demand has hindered the increase. Overall, in the first half of May, the prices of various raw materials provided weak and then strong support for PP costs.

In terms of supply: In the first half of May, the load of domestic PP enterprises remained stable with a slight decrease, and the market supply remained generally abundant. Overall, the industry's overall load level has decreased by 3% to 76% compared to the pre holiday period, with an average weekly total output of approximately 780,000 tons. In the interval, companies such as Shatian Tianjin, JuzhengRMB, and Only Chemical have maintenance plans to basically smooth out the production capacity of multiple sets of equipment that resumed work during the May Day holiday. However, the total domestic inventory continues to rise to a high of 900,000 tons. The supply side still exerts certain pressure on the spot price of PP.

In terms of demand: In the first half of May, the demand side of PP continued to be weak, and on-site trading maintained a weak and rigid demand situation. The consumption level of end enterprises in plastic weaving has returned to the off-season level. With the passing of the small peak in material usage, the release speed of PP demand in fields such as construction and agriculture has slowed down. However, under the recent suspension of tariffs between China and the United States, market confidence has been strengthened, and there is a high expectation of a rebound in PP consumption in the future. The export resistance of downstream PP products in China has decreased. However, the transmission of positive news still takes time. Currently, buyers' purchasing operations are still cautious and biased towards scattered small orders. Although there has not been a significant increase in new orders in the market. Overall, the performance of the PP demand side was average in the first half of May.

In the first half of May, the domestic PP market prices were consolidating. Fundamentally speaking, the comprehensive support of upstream raw materials for PP initially weakened and then strengthened. The industry has abundant supply, inventory pressure, and weak consumption continues. The results of the current China US talks have a positive impact on both the upstream and downstream of PP, injecting a stimulant into the market atmosphere and raising expectations for future prices. At present, some merchants in the market are trying to raise prices, but the market still needs to go through the process of de stocking. It is recommended to closely monitor the circulation of goods.

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