According to the Commodity Market Analysis System of SunSirs, the PP market had a narrow range of fluctuations and consolidation at the end of February, with some brand products experiencing mixed price fluctuations. As of February 26th, the mainstream offer price for wire drawing by domestic manufacturers and traders is around 7,516.67 RMB/ton, a decrease of -1.49% compared to the price level at the beginning of February.

In terms of raw materials: In terms of remote upstream crude oil, in mid month, the United States imposed tariffs and Trump requested OPEC to increase production to lower oil prices, while US crude oil inventories remained high. At the end of the month, with the easing of the geopolitical situation between Russia and Ukraine, market concerns about crude oil demand have expanded. The price of crude oil is suppressed by various factors, and the rate of change remains negative. The propylene sector is in a downward trend due to previous high prices and weakened upstream, while the propane sector lacks active guidance. Overall, the PP raw material market was weak at the end of February, providing moderate support for PP costs.

In terms of supply: At the end of February, the load of domestic PP enterprises remained stable with a slight decrease, and the market supply remained abundant. Overall, the industry's overall load level has slightly decreased by 2% to 77% compared to mid month, and the domestic weekly average production has dropped to around 730,000 tons. Recently, there has been no production capacity landing, and the previously accumulated discharge pressure from new devices is gradually being digested. The maintenance and resumption of work of PP equipment in the future are mutually apparent, and from the results, it is expected that there will be a narrow relaxation trend in shipment volume. The supply side's support for PP spot prices is expected to remain stable with small fluctuations.

In terms of demand: At the end of February, the demand for PP remained generally stable, continuing the previous weak level. Although there was no significant increase in production in the field, enterprises gradually resumed work after the holiday, and the consumption level of woven bags such as fertilizers, cement, and rice showed a trend of recovery. The inventory of plastic woven enterprises was partially digested. Expected to expand the stocking potential of the buyer camp. Overall, the demand side is showing a positive trend.

At the end of February, the domestic PP market prices fluctuated narrowly and consolidated. From a fundamental perspective, the overall performance of upstream raw materials in supporting PP is poor, industry supply is expected to level off, there is a trend of recovery in consumption, and market momentum has the potential to rise. But in the short term, the bullish momentum is not strong, and the market lacks momentum. It is expected that the PP price market will continue to consolidate.

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