According to the Commodity Market Analysis System of SunSirs, the PP market was consolidating at the end of March, with most brand products having no price adjustment or a narrow adjustment range. As of March 26th, the mainstream offer price for wire drawing by domestic manufacturers and traders is around 7,555 RMB/ton, a decrease of +0.51% compared to the price level at the beginning of March.

In terms of raw materials: Due to signals of easing geopolitical conflicts and the impact of oil producing countries' plans to increase production, the upstream crude oil trend of PP has declined in the early stage. At the end of March, some potential negative factors were digested, and oil prices rebounded from low levels. However, due to the negative transmission of crude oil in the early stage and the drag of lower than expected trading, the spot price of propylene has recently broken through and declined. The price of propane mainly fluctuates with crude oil. Overall, the PP raw material market showed mixed ups and downs at the end of March, providing moderate support for PP costs.

Supply side: At the end of March, the load of domestic PP enterprises was slightly reduced, and the market supply remained generally abundant. Overall, the industry's overall load level has decreased by about 5% to 77% compared to mid month, and the domestic weekly average production has returned to nearly 730,000 tons. Recently, Maoming Petrochemical and Jinergy Chemical have reduced their workload through maintenance, and in the future, there will be maintenance tasks for equipment at enterprises such as Zhongjing Petrochemical. The domestic supply has slightly decreased and there are expectations of tightening, and the supply side's support for PP spot prices has slightly rebounded at the end of the month.

In terms of demand: At the end of March, there was limited improvement in the demand side of PP, and on-site trading remained at the level of essential demand. The consumption level of end enterprises in the field of plastic weaving has stabilized. The demand for PP in fields such as architecture and agriculture is slowly increasing with the warming temperatures. But currently, there is no increase in new orders in the market, and buyers tend to maintain production with scattered small orders. Against the backdrop of weak overseas macroeconomics, the export window period is difficult to materialize, and overall, the demand side lacks momentum due to the impact of US tariffs.

At the end of 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, industry supply has been lowered at a high level, consumer demand has flattened, market supply and demand are in a game, and long and short positions are temporarily balanced. In the short term, the PP price market may continue to consolidate and operate.

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