According to the Commodity Market Analysis System of SunSirs, the PP market has recently declined, and prices of various brand products have generally fallen. As of the afternoon of July 25th, the mainstream offer price for wire drawing by domestic producers and traders was around 7,857.17 RMB/ton, a decrease of -1.61% compared to the price on July 1st.

Due to the high international crude oil prices in the early stage and frequent adjustments in crude oil prices recently, the mentality of market operators has been affected. After the price loosens, there is trading volume, but the overall decline is limited. The flow rate of downstream propylene sources is average, and the overall price is weak. Due to the rise in liquefied gas prices, propane prices have been boosted, resulting in an increase in PDH production costs. Overall, there has been a slight loosening of the support for PP from various raw materials recently.

In terms of supply:

Recently, the load level of domestic PP enterprises has reached an average of 70% of the initial operating level. Although there were some devices that were short repaired in the future, they were smoothed out by the resumption of work devices. There is an expectation of an increase in production, a narrow rise in inventory, and a narrow downward adjustment in factory pricing for enterprises. At present, the on-site supply of goods remains abundant, and the supply pressure is stable with some increase.

In terms of demand:

Recently, the performance of PP demand side has been poor, and the load of end enterprises has generally remained stable. Among them, the consumption of woven bags such as fertilizers and cement is at a low season level, and the operating rate of plastic weaving enterprises is relatively low at 40%, with weak enthusiasm for replenishing inventory. Due to the high raw material prices and slow cost transfer, the direction of membrane enterprises has resulted in low profit margins, leading to replenishment operations centered around essential needs. The comprehensive operating rate of injection molding enterprises is 50%, basically flat. The trading atmosphere in the downstream market of PP is generally average, with limited new orders and mostly pre delivery contracts. The demand side creates a certain drag on the PP market.

The current domestic PP market prices are experiencing a narrow decline. The comprehensive support for upstream raw materials is loose, and PP demand is at a low season level. Short term gains are unlikely to materialize, and the future supply and demand trend is stable with an upward trend. The improvement in consumption patterns may be limited. Overall, it is expected that the PP market will mainly consolidate and operate weakly by the end of July.

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