Price Trend

According to the data monitored by business associations, the PP market is on the strong side this week. As of July 19, the mainstream offer price of T30S by domestic producers and traders was around 8833.33 yuan/ton, up 2.32% from the beginning of the month.

II. Cause Analysis

Upstream: Since last weekend, PP upstream propylene market supply shortage has improved to some extent, the supply increased. Downstream just need to purchase, the operation is more cautious. As of Friday, PP upstream propylene distributor manufacturers’offer declined.

Products: Domestic PP supply shortage situation has not improved. But PP itself has entered the traditional demand off-season, and there is a certain degree of wait-and-see mentality on the field. Zhenhai Refinery (Sinopec East China) PP ex-factory price, drawing T30S quoted for 8900 yuan/ton. Jiujiang Petrochemical (Sinopec East China) PP ex-factory price, drawing T30S quoted 8800 yuan/ton. Fushun Petrochemical (CNPC East China) PP ex-factory price, drawing T30S quoted 8800 yuan/ton. Daqing Petrochemical (CNPC Northeast) PP ex-factory price, drawing T30S quoted 8800 yuan/ton. Dalian Organic PP (CNOOC Northeast) ex-factory price, drawing T30S offer for 8600 yuan/ton. Jingmen Petrochemical (Huazhong) PP ex-factory price, drawing T30S quoted 8850 yuan/ton.

3. Future Market Forecast

PP business analysts believe that the current domestic demand for PP into the traditional demand off-season, weakening the recent upward momentum. On-site trading is still acceptable, but dealers’shipment mentality is weak. The shortage of goods has not improved and the trading atmosphere is flat. PP trend is expected to continue to shake the whole market in the near future.