According to the Commodity Market Analysis System of SunSirs, the rise in the PP market in the first half of April was hindered, and the prices of most brand products fell back. As of April 16th, the mainstream offer price for wire drawing by domestic producers and traders is around 7,565 RMB/ton, with an increase or decrease of +0.02% compared to the price level at the beginning of April.

In terms of raw materials: In the first half of April, the US tariff policy was implemented, with tariff rates constantly changing and increasing to unprecedented heights. The tariff trade war launched by Trump has had a huge impact on the global economy. Crude oil, as a heavily affected area, has experienced a sharp drop in prices recently. At the same time, it seriously affects the domestic supply of propane, and also drags down the operation and profitability of PDH manufacturing enterprises. The highest strength in the propylene field is insufficient, and it has entered a weak oscillation trend. Overall, the prices of various raw materials in the first half of April did not provide strong support for the cost of PP.

In terms of supply: In the first half of April, domestic PP enterprises had a large and stable load with small fluctuations, and the market supply remained generally abundant. Overall, the current industry load level is around 79%, with an average weekly production of approximately 760000 tons in China. Recently, Guangdong Petrochemical, CNOOC Shell, and Ningbo Jinfa have successively implemented maintenance plans, resulting in an overall expansion of production capacity losses and an expected supply contraction in the future. There is an upward trend in the supply side's support for PP spot prices.

In terms of demand: In the first half of April, the demand for PP remained stable with some weakness, and on-site trading maintained a weak rigid demand pattern. In terms of plastic weaving, the consumption level of terminal enterprises has generally stabilized. The demand for PP in fields such as architecture and agriculture is gradually increasing with the warming of temperatures. However, under the influence of international news such as equivalent tariffs imposed by the United States, the global economy has been greatly impacted and future uncertainty has increased. Although the domestic PP import and export dependence share is relatively small, its downstream product exports are hindered. Buyers tend to maintain production through scattered small orders in their purchasing operations, although there has not been a significant increase in new orders in the market. Overall, the demand side of PP weakened in the first half of April.

In the first half of April, the domestic PP market prices fluctuated weakly. From a fundamental perspective, the overall performance of upstream raw materials in supporting PP is average, with abundant industry supply and weak demand support in consumption. The future industry market pattern is characterized by a 1:2 bearish guidance formed by weak supply search and consumption, as well as weakened costs. There is a clear avoidance of suspicion within the market. In the short term, the price trend may not see a significant increase, and it is recommended to closely monitor the situation of tariffs and the circulation of goods.

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