According to the Commodity Market Analysis System of SunSirs, the PP market fluctuated and consolidated in mid March, with most brand products experiencing narrow price adjustments. As of March 19th, the mainstream offer price for wire drawing by domestic producers and traders is around 7,541.67 RMB/ton, which has increased or decreased by 0.33% compared to the price level at the beginning of March.

In terms of raw materials:

The trend of the upstream crude oil market in the far end has declined. On the one hand, the Russia Ukraine peace talks have released positive signals, and the United States is considering easing sanctions on Russia, which has reduced potential supply risks. On the other hand, oil producing countries plan to increase production slightly starting from April, which has led to a decline in the international crude oil market; In addition, the imposition of tariffs by the United States has intensified market concerns and may drag down global economic and demand expectations, resulting in a sluggish crude oil market. In terms of propylene, it has already fallen to a temporary low point in the early stage, and there is a tight supply-demand struggle in the middle stage, with a narrow range of fluctuations. Although prices rebounded narrowly in the first ten days, trading fell short of expectations or dragged down the future market. The price of propane mainly fluctuates with crude oil. Overall, the PP raw material market fluctuated in mid March, and the overall support for PP costs was average.

Supply: In mid March, the load of domestic PP enterprises increased narrowly, and the market supply remained abundant. Overall, the industry's overall load level has increased by about 1% to 82% compared to the beginning of the year, and the domestic weekly average production has risen to nearly 780,000 tons. The production capacity is still in the blank stage within ten days, and recently there have been maintenance tasks for the equipment of enterprises such as Maoming Petrochemical, Donghua Energy, and Zhongjing Petrochemical. From the results, there is a narrow expectation of supply reduction. As for the ten day period, the supply side's support for PP spot prices is still relatively weak.

Demand: In mid March, there was limited improvement in the demand side of PP, and on-site trading remained at the level of essential demand. The rebound trend of consumption levels of woven bags such as fertilizers, cement, and rice in terminal enterprises has slowed down. With the warming of temperatures, the demand for PP in fields such as architecture and agriculture has also increased. But currently, the scale of new orders in the market is generally small, and there has been no significant increase in volume. However, exports are still affected by tariffs, and overall, the demand side shows insufficient momentum.

In mid March, the domestic PP market prices were mainly consolidating. From a fundamental perspective, the overall performance of upstream raw materials in supporting PP is average, with industry supply rising slightly at a high level, slow recovery in consumption, market supply-demand competition, and a dilemma between long and short positions. In the short term, the PP price market may still be under pressure and consolidation.

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