Polypropylene PP: The spot market is showing signs of loosening

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April 9, 2024, 5:19 PM

Sinopec inventory: 865000 tons of two-oil polyolefin inventory, 20, 000 tons less than yesterday.

PP futures analysis: April 9 PP2405 opening price: 7596, highest price: 7616, lowest price: 7599, position: 255359 lots, settlement price: 7598, yesterday settlement: 7590, up: 8, daily trading volume: 194477 lots.

Mainstream quotation for wire drawing in PP market: yuan / ton

Region	April 8th	April 9th	Rise and fall
North China	7470-7600	7470-7600	0/0
East China	7570-7650	7570-7650	0/0
South China	7630-7700	7600-7700	-30/0

PP China spot market analysis: today, the rising trend of China's PP market slows down, some prices are loosened, and the mainstream prices of wire drawing in China range from 7470 to 7700 yuan / ton. Production enterprises have been actively up-regulated since the beginning of the month, and there are still some supplementary increases today. The rising trend of coal enterprises has slowed down, and the supporting role of supply cost in the field is still strong. Add in the upstream parking increment since the end of the month, and the supply side is also good. However, the futures market is arranged in small intervals, and the rise slows down, so it is difficult to form a strong upward drive. Traders wait and see shipments, the offer is more stable, some of the firm offer fell. Downstream rigid demand to enter the market, low-price buying is OK, high-price trading is weak.

PP spot trend forecast: raw materials: overnight crude oil open low and high close, daily line close long shadow positive line, crude oil disk continues to maintain a strong structure, but the short-term rhythm is slightly weakened, but not serious for the time being. The center of gravity of raw materials gradually moves up, driving up the production cost of polypropylene. Petrochemical policy: the current performance of the two cities is good, there are still upward movements in various regions, and the supply cost of goods in the field is strongly supported. On the supply side: since late March, there has been an increase in equipment overhaul in China. In April, there are still many devices parking, including Zhejiang Sinopec, Shenhua Baotou and Datang. At the same time, the possibility of operating parking due to cost is not ruled out, and the market supply is expected to be significantly reduced. On the demand side, the overall downstream demand is relatively stable, driving little in the short term. Under the comprehensive influence, it is expected that the short-term PP market still maintains a strong shock operation, but subject to weak buying at high prices, the overall upward space in the short term may be limited.

China's PP index: according to Tudor data, China's PP spot index fell 5, or 0.07%, to 7598 on April 9.

China installation parking Summary:

Enterprise name	product line	Production capacity	Parking Duration	departure time
Dalian Petrochemical Corporation	Third line	5	August 2, 2006	To be determined
Wuhan Petrochemical Corporation	Old equipment	12	November 12, 2021	To be determined
Haiguolong oil	First line	20	February 8, 2022	To be determined
Haiguolong oil	Second line	35	April 3, 2022	To be determined
Tianjin Petrochemical Company	First line	6	August 1, 2022	To be determined
Jinxi Petrochemical	Single line	15	February 16, 2023	To be determined
Yanshan Petrochemical	Second line	7	September 18, 2023	To be determined
Shaoxing Sanyuan	New line	30	September 20, 2023	To be determined
Qinghai Salt Lake	Single line	16	October 27, 2023	To be determined
Changzhou Fude	Single line	30	November 1, 2023	To be determined
Jingbo polyolefin	First line	20	November 1, 2023	To be determined
Luoyang Petrochemical	First line	8	November 3, 2023	To be determined
Zhongjing Petrochemical	The first phase and the first line	50	December 5, 2023	To be determined
Hongrun Petrochemical	Single line	45	December 6, 2023	To be determined
Qilu Petrochemical	Single line	7	December 23, 2023	To be determined
Lianhong Xinke	Second line	8	December 30, 2023	To be determined
Fujian Union	Old line	12	January 3, 2024	To be determined
Gold energy chemistry	First line	45	March 8, 2024	To be determined
North China brocade	Old line	6	March 8, 2024	To be determined
Jiutai Group	Single line	32	March 15, 2024	April 15, 2024
Donghua Energy (Ningbo)	The first line of Phase II	40	March 19, 2024	April 8, 2024
Donghua Energy (Ningbo)	Second phase, second line.	40	March 20, 2024	April 8, 2024
Chinese Science Refining and Chemical Industry	First line	35	March 20, 2024	May 20, 2024
Chinese Science Refining and Chemical Industry	Second line	20	March 21, 2024	May 20, 2024
Ningbo Fude	Single line	40	March 24, 2024	April 4, 2024
Jingbo polyolefin	Second line	40	March 26, 2024	April 15, 2024
Quanzhou, Sinochem	Second line	35	March 26, 2024	March 31, 2024
Jingmen petrochemical	Single line	12	March 27, 2024	March 31, 2024
Qinzhou, Guangxi	Single line	20	March 30, 2024	April 1, 2024
Dalian Petrochemical Corporation	Second line	7	March 31, 2024	May 10, 2024
Dalian Petrochemical Corporation	First line	20	March 31, 2024	May 10, 2024
Tianjin Petrochemical Company	Second line	20	April 1, 2024	April 14, 2024
Zhongyuan Petrochemical Company	First line	6	April 1, 2024	To be determined
Dongguan Juzhengyuan	The first line of Phase II	30	April 1, 2024	April 2, 2024
Dongguan Juzhengyuan	Second phase, second line.	30	April 1, 2024	April 2, 2024
Zhejiang Petrochemical Corporation	First line	45	April 6, 2024	April 23, 2024

Shenhua auction turnover: Shenhua Coal Chemical PP auction volume of 1469 tons, down 25.36% from yesterday; turnover of 1413 tons, an increase of 1.07% over yesterday, and a turnover rate of 96.19%, an increase of 25.15% over yesterday.