According to the Commodity Market Analysis System of SunSirs, the PP market was mainly sorted out in early January, and the price changes of most brand products were relatively narrow. As of January 9th, the mainstream offer price for wire drawing by domestic producers and traders is around 7,605 RMB/ton, a decrease of -0.54% compared to the price level at the beginning of January.

In terms of raw materials: In terms of international crude oil, due to the strengthening of the US dollar at the end of December and the contraction of consumption, oil prices have weakened. However, with the recent rebound in the market and the continued positive impact of the OPEC+ production reduction plan delay, coupled with strong demand in Asia, there has been a rebound in support for the upstream of PP in the far end. Domestic demand for propylene remains strong, with an increase in midstream stocking operations, while the market for propane is weak due to external influences. Overall, in early January, the overall market trend for PP raw materials was more bullish than bearish, and the support on the cost side was still acceptable.

In terms of supply: In the first half of the year, there was a mutual occurrence of maintenance and production in domestic PP enterprises, and the overall load level remained stable with small fluctuations. The load of enterprises such as Daxie Petrochemical and Zhonghan Petrochemical has gradually returned, and overall, the industry's overall load has increased by about 0.5% to 78.5%. The domestic PP shipment volume is flat, with an average weekly output of around 730,000 tons. Although some newly put into operation facilities are unstable, the supply is still abundant. Overall, the supply side provides average support for PP spot prices.

In terms of demand: Within ten days, the demand for PP tends to lean towards rigid demand. Due to seasonal factors, the consumption level of woven bags such as fertilizers, cement, and rice remained stable with a slight decrease during the first ten days. The consumption level of plastic weaving has also declined narrowly, and the willingness to hold positions has cooled down; As the end of the lunar calendar approaches, there is a decline in business operations and a mutual phenomenon of stocking up. The slow release of some pre holiday replenishment demand has to some extent boosted consumption. Overall, the demand side tends to have weak fluctuations in most aspects.

In early January, the domestic PP market prices fluctuated and consolidated. Fundamentally speaking, the overall performance of upstream raw materials in supporting PP is average. The industry supply is basically flat. According to consumer feedback, businesses are cautious about future terminal consumption and tend to focus on restocking for essential needs. In the short term, it is expected that PP prices will remain stagnant.

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