1.Price trend

According to data monitored by SunSirs, the domestic PP market was weak in February, and spot prices were mostly lowered. As of Monday, March 2nd, domestic manufacturers and traders' T30S mainstream offer prices were around 7016.67 yuan / ton, a 6.67% drop from the average price level in early February.

2. Analysis of influencing factors

Upstream: According to data from the SunSirs block list, the domestic market price of PP upstream propylene has continued to decline since February, and the overall trend has declined. Among them, the price of propylene in Shandong has been declining all the way. In addition, social health incidents have affected many upstream and downstream industries to shut down production and overhaul. The operating rate is still low. Some refineries have low-price shipments under pressure, and the market has sparse transactions and the market is deserted. China's propylene market rebounded at the end of the month. During the period, the price of crude oil in raw materials changed little, but it has been continuously raised for several days. The production of propylene is small, but the resumption of work by terminal manufacturers has increased, and the logistics and transportation have also resumed, which has a certain effect on alleviating the weak demand for propylene. It is expected that the market price of propylene may increase recently.

Products: In the beginning of February, poor domestic logistics led to increased pressure on PP inventory in petrochemical plants. On the demand side, although downstream factories have begun to resume work, they have fewer workers and have a lower operating load. By the end of February, domestic logistics has further resumed. At present, low-cost materials are selling well, and producers are smoothly consuming inventory. Petrochemical plant inventory pressure has eased, and industry confidence has been boosted. On the demand side, downstream factories have resumed work, increasing the operating rate of manufacturers and replenishment. Manufacturers and distributors have a sound mindset, and it is acceptable to take orders.

3. Market forecast

SunSirs' PP analysts believe that from the perspective of the results, the domestic PP spot market in February was generally weak, and the upstream propylene price bottomed out, and the support for PP cost side was not reflected until the end of the month. The resistance to restricted logistics transportation has begun to decrease, and the resumption of work at downstream factories has accelerated. Demand has improved, inventory at petrochemical plants has decreased, and operators have followed the market and kept orders steady. It is expected that the PP market may fluctuate or rise in the near future. It is recommended to pay close attention to the cost-side propylene market.

If you have any questions, please feel free to contact SunSirs with marketing@sunsirs.com.