According to the Commodity Market Analysis System of SunSirs, the PP market in January was mainly consolidated, with some brand products experiencing narrow price reductions. As of January 31st, the mainstream offer price for wire drawing by domestic producers and traders is around 7,558.33 RMB/ton, a decrease of -1.16% compared to the price level at the beginning of January.

In terms of raw materials:

Due to the strengthening of the US dollar at the end of December last year and the contraction of consumption, oil prices weakened in early January. Entering 2025, concerns about crude oil supply have risen due to the extension of the OPEC+ production reduction agreement until the end of the first quarter and the obstruction of some ship exports. In addition, the recent low temperature weather in Europe and America has boosted demand, and under various stimuli, international crude oil prices have fluctuated and risen. Overall, the upstream support of PP is strengthening. At the beginning of the month, the price of propylene increased due to the increase in midstream inventory and high external prices. However, after the price rose to a high level, trading cooled down, resulting in a significant decline in propylene in late January. The overall consolidation of propane has been weak throughout the month. Although it received positive news from crude oil in the second half of the month, transmission still needs time, and the market is still in a weak consolidation trend. Overall, the PP raw material market fluctuated before the Spring Festival in January, and the cost value at the end of the month remained positive guidance.

In terms of supply:

Domestic PP enterprises have resumed work and production, resulting in an increase in pre holiday load levels. During the month, the load of enterprises such as Daxie Petrochemical, Zhonghan Petrochemical, and Qilu Petrochemical has gradually returned. Overall, the industry's overall load has increased by about 5% to 83%. The domestic weekly average production is over 730,000 tons, and the PP shipment volume is flat. At the same time, newly put into operation devices are being produced one after another, and the market supply is abundant. Overall, the supply side provides moderate support for PP spot prices.

In terms of demand:

Before the holiday, the demand for PP tends to be weak and rigid. Before and after the Spring Festival holiday, the consumption level of woven bags such as fertilizers, cement, and rice decreased, and the consumption level of plastic weaving also declined. The stocking intensity of terminal enterprises is average, and their willingness to continue purchasing before the holiday is low. Their operations tend to be short-term and buy as you go. As companies gradually enter the holiday season, the workload decreases. In addition, with the trend of year-end fund withdrawal in the market, overall, the demand side has shown weak performance.

The domestic PP market price consolidation was weak before the Spring Festival in January. Fundamentally speaking, the overall performance of upstream raw materials in supporting PP is still acceptable. The industry supply has increased. According to consumer feedback, during the Spring Festival period, businesses gradually withdrew from the market and there was a lack of purchasing power in the market. In the short term, it is expected that PP prices will remain relatively stable in early February.

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