High cost, PP powder survival difficult

- Jun 03, 2019-

This week's PP powder can be said to survive in the crack, hard to breathe, to the base powder to what extent?Let's see.

Why come to such a place, this will start from the contradiction between supply and demand intensified.Part this week because of the refinery propylene monomer overhaul and inventories low positive driven all the way rally, quickly lead to powder high cost, profit approximation and even below the cost line, however, under the high cost of the early stage of the powder has not been up support, mainly because of the downstream still demand off-season, enquiries are cold and cheerless, and futures to boost, manufacturers have shrinking profits, high cost pressure to load down, maintenance, etc.It is understood that at present, shandong has a number of enterprises can not afford high costs into the maintenance phase, shandong luqing old factory maintenance, restart time is not determined.Dongming dongfang will start the maintenance on May 27th, and it is expected to take one week.Shandong hengyuan May 28 maintenance for about a week;Zibo nuo hong load has fallen two to three.

Let's take a look at the price trend of powder this week. As shown in the figure above, this Monday was dragged down by poor futures trend, and downstream and middlemen just needed to buy. The market center of gravity was slightly lower overall.Propylene prices continued to rise on Tuesday, cost containment profit contraction, resulting in limited downward space for powder, the relevant practitioners more cautious wait and see, powder deadlock finishing.So far, however, the rally in propylene shows no sign of stopping, so powder companies are forced to raise prices under the pressure of high costs, the trend is on the test.

Later, high-cost continued good support, and some powder enterprises overhaul, supply a boost, powder price will rise to enter a new agent, but as a result of poor overall demand, during the off-season, shopping is still continuation of periodic is expected to moderate margin, so although have rebounded high expectations but still does not rule out weaker in May, many range-bound.