According to the Commodity Market Analysis System of SunSirs, the PP market continued its weak consolidation trend in late August, with prices of various brand products experiencing a narrow decline. As of the afternoon of August 27th, the mainstream offer price for wire drawing by domestic producers and traders is around 7,750 RMB/ton, with a decrease of -100% compared to the beginning of the month.

In terms of raw materials:

In terms of international crude oil, although the United States had the impact of unexpected inventory decline and rising tensions in the Middle East in the early stage, the market showed concerns about the macro situation of economic recession, leading to stagnant and volatile oil prices. Last week, there was a slight rebound in the propylene sector, but after the price increased, downstream enthusiasm for receiving goods declined and the speed of supply circulation slowed down. The price of propane is relatively firm, while some demand for methanol extraction is released, resulting in a strong cost side for PDH and methanol to PP production. Overall, the strength of support for PP from various raw materials has been fluctuating recently, and it is generally acceptable.

In terms of supply:

In late August, the load level of domestic PP enterprises continued the previous pattern of large stability and small fluctuations. Recently, there has been more resumption of work for enterprise installations compared to maintenance, and there are still some installations returning in the future, with an increasing trend in supply. The current industry load is about 75%, with a total output of nearly 670000 tons last week, an increase from the previous month. The factory pricing of the enterprise has been lowered, resulting in a decrease in inventory. Overall, the current on-site supply of goods remains abundant, and supply pressure still exists.

In terms of demand:

In late August, there was a narrow improvement in the demand side of PP, and the overall load of end enterprises rebounded at a low level. The consumption of woven bags such as fertilizers and cement is still at the off-season level, and the operating rate of plastic weaving enterprises is low, with weak enthusiasm for replenishing inventory. However, downstream product orders from film companies are on the rise, and replenishment operations are relatively strong in terms of demand. The comprehensive operating rate of injection molding enterprises has also increased at a low level. The trading atmosphere in the downstream market of PP has partially improved. However, the traditional peak season of "Golden September" has not yet fully unfolded, and the market lacks decisive guidance signals in the short term. The demand side has average support for the PP market.

Recently, there has been a narrow decline in the domestic PP market prices. Fundamentally speaking, the comprehensive support of upstream raw materials for PP is still acceptable, and the demand side has eased from the off-season market. However, there is a trend of increasing supply and demand in the future, and the sentiment of spot trading at the end of the month has not yet been activated by the peak demand season next month. New orders on the exchange maintain their position after price reductions. Overall, in the short term, the PP market may mainly focus on consolidation and operation.

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