This week, the domestic PP market has shown a slight decline. As of Thursday, the average price of in East China was 7502 yuan/ton, down 8 yuan/ton from the previous week, representing a decrease of 0.1%. The regional price differences for PP have remained largely stable, with only a slight narrowing of the price gap between PP and low-melting copolymers The PP futures market has shown a lot of volatility this week, which has not significantly boosted the confidence of traders in the spot market. The prices of crude oil propylene have also been fluctuating, but the cost support for PP has remained largely unchanged. Some unplanned maintenance units have resumed operation this week, leading to slight increase in weekly output. However, in some areas, the supply of PP is still tight, and traders are still holding prices firm, which provides some support PP prices in the short term. On the demand side, downstream factories are not seeing much new business, and their overall operating rates are low.
Additionally, they eager to recover funds and are not actively preparing for the holiday season, which is putting pressure on PP prices. In general, the lack of real demand is significantly down market prices, but there is still some support from the supply side and cost side, which limits the extent of the price drop. Prediction: We expect PP market to stabilize next week. In East China, for example, we expect the price of PP to range from 7400 to 760 yuan/ton, with an average price of 7500 yuan/ton. The price of low-melting copolymers is expected range from 7850 to 8000 yuan/ton, with an average price of 7900 yuan/ton. The price crude oil is expected to fluctuate next week, which will not provide much guidance for the cost of PP. In terms of supply, new capacity is expected to steadily released, and the intensity of plant maintenance is expected to decrease, leading to an increase in supply. On the demand side, there is a lack of new, and the operating rates are expected to decline. Moreover, the holiday season preparations have not yet begun, so the demand is expected to remain weak in the short. In general, the supply and demand fundamentals provide less support for the market, but the low inventory levels of enterprises and traders, as well as the structural shortage some sources in the market, will continue to provide some support. Therefore, we expect the PP market to stabilize next week
