Downstream demand follow up is relatively slow, the next phase of PP market is expected to be strong shock

- Apr 29, 2019-

PP slightly down this period of domestic PP ton product prices rose about 100 yuan.

At present, the mainstream wire-drawing price in north China market is 8850~8900 yuan, the mainstream wire-drawing price in east China market is 8900~9050 yuan, and the mainstream wire-drawing price in south China market is 9030~9180 yuan.

PP futures surged on the recent strengthening of safety inspections of hazardous chemical production across the country, the planned sharp reduction in the number of chemical enterprises in jiangsu, and the sustained rise in international oil prices.

Spot markets edged higher on the back of futures.

By the close of the end of the semester, the settlement price of varieties in south China in April T30S was 8950 yuan, down 150 yuan.


On the supply side, the domestic PP plant started to maintain a high level, although the next phase of qilu petrochemical, shell and other manufacturers plan to overhaul, but the impact is limited.

In terms of inventories, the decline in petrochemical inventories accelerated.

On the demand side, there is a certain resistance to price increases in the downstream. Most steel products are mainly purchased, and the volume of demand is not obvious.

In general, PP inventory pressure is not large, coupled with rising costs, petrochemical companies price will be strong.

But the downstream demand follow up is relatively slow, the next phase of PP market is expected to be strong shock.


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