According to the Commodity Market Analysis System of SunSirs, the PP market in February fluctuated and stabilized after a decline, with most brand products experiencing narrow price reductions. As of February 28th, the mainstream offer price for wire drawing by domestic producers 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, the United States imposed tariffs this month and Trump requested OPEC to increase production to lower oil prices, while US crude oil inventories remained high. With the easing of the geopolitical situation between Russia and Ukraine, the market's concerns about reduced demand for crude oil have widened. Prices are suppressed by various factors, resulting in weak fluctuations in oil prices. The favorable effects of low pre holiday prices and reduced supply in the propylene sector have gradually dissipated, coupled with a weakening upstream market, leading to a decline. Lack of active guidance on propane, with a focus on price consolidation. Overall, the PP raw material market in February was weak, providing moderate support for PP costs.

In terms of supply: In February, the load of domestic PP enterprises was gradually reduced, but the market supply is still abundant. Overall, the industry's overall load level has decreased from 83% at the end of January to 77%, and the domestic weekly average production has dropped to around 730,000 tons. No production capacity will be implemented within the month, and the previously accumulated discharge pressure from the new equipment is gradually being absorbed. 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: The recovery of PP demand side in February was relatively slow, and the trading volume for the whole month was roughly at a weak level. At the end of the month, the resumption of work in enterprises is gradually in place, and the consumption level of woven bags such as fertilizers, cement, and rice is showing signs of recovery. The inventory of plastic woven enterprises has been partially digested. Although there was no significant increase in volume on the spot, it is expected that the stocking potential of the buyer camp will expand in the future. Overall, the demand side is showing a positive trend.

After the domestic PP market price fell in February, it sorted out. 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 momentum is still insufficient. It is expected that the PP price market will continue to consolidate.

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