According to the company’s commodity market analysis system, the PP market in China in September was shaky, and the price of various brands fell more or less. As of September 17, domestic producers and traders drew the mainstream bidding price at about 7,113.33 yuan / ton, a decrease of -0.93% from the price level in early September.
Price Movement
In terms of raw materials:
At the beginning of September, the geo-situation in Eastern Europe and the Middle East remained calm, and market concerns about crude oil supply decreased. At the same time, OPEC + production growth strategy continued to this day, seasonal demand synchronously faded, and international oil prices shocked. The price of propylene was boosted by Haiwei’s repair news in the early days, but the onsite supply was abundant, and the price rise was greatly resisted.
Supply:
In September, PP enterprise start-up rate in China was reduced to a high level. By the time of publication, the overall load level of the domestic industry was reduced from 80% at the beginning to about 75%, the average total weekly output fell to less than 790,000 tons. However, recently, some production lines have been restarted, and 450,000 tons of the first line of the new production line in Ningbo in the second phase of 900,000 tons were put into production.
In terms of demand:
In September, in the traditional polypropylene high season, plastic knitting, agriculture and other fields of materials have improved to a certain extent. New orders in the field have gradually increased, and the market dynamics are rising. However, the advantages of improving the market trading atmosphere are offset by many negative factors.
Aftermarket Forecast
In September, PP market price shocks in China. Basically, the upstream raw materials market is weak, the overall support for PP is poor. The industry load is high and narrow, and aftermarket supply is expected to be relaxed. Although consumption has improved, the market is dragged by the cost and supply side. The current seasonal bullish market atmosphere is suppressed, and PP is expected to remain stagnant in the short term.
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