According to the Commodity Market Analysis System of SunSirs, before the Spring Festival, the domestic PP market remained strong and the price changes of various brand products were relatively narrow. As of February 13th, the benchmark price for PP drawing offered by SunSirs was 6,700 RMB/ton, with a year-on-year increase or decrease of 3.32% in price level.

In terms of raw materials: At the beginning of the year, the US action boosted the international crude oil market, and the uncertainty of the US Iran situation has caused concerns among industry players. The market has fluctuated at a high level, providing strong support for the upstream of PP in the far end. In terms of propylene, it remains strong at a high level, with tight supply balance being the main driving force, in addition to the previous increase in raw materials. At the same time, the price of propane port cargo remains high, and the overall focus of spot prices remains unchanged. Overall, the prices of PP raw materials are positive, providing strong support for PP costs.

Supply side: In the first half of February, the restart and maintenance of domestic PP enterprises were generally balanced, with limited changes in overall operating rates. As of the time of writing, the overall load level of the domestic industry has slightly decreased by 1% to around 74%, with little difference from the beginning of the month. The current weekly average total output is over 760,000 tons, and the inventory position is about 660,000 tons, which will continue to be digested. The on-site supply remains abundant. Overall, the supply side's support for spot prices is still acceptable.

On the demand side: Affected by pre holiday stocking, the overall trading atmosphere in the downstream market of the industry improved in early February. At the same time, there are also some orders released to chase price increases, increased warehouse building operations, and oversold refinery capacity. Overlaying the stage vacuum of production in the future, stabilizing the mentality of industry players, and strengthening the demand side's support for PP. But recently, the Lunar New Year has fallen, and most terminal enterprises are gradually arranging holidays. The future production schedule will decline, and the return of funds at the end of the year will to some extent constrain demand. Currently, trading on the market is calm, and businesses are gradually delisting.

The domestic PP market prices remained firm in the first half of February. Fundamentally speaking, the comprehensive support of upstream raw materials for PP cost side remains strong. Industry load adjustment, with slight improvement in consumption. During the Spring Festival period in the future, trading may be sluggish, and with a large base of production capacity, inventory may accumulate. Therefore, it is expected that the PP market may face some upward resistance after the holiday.

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