Polypropylene (PP) powder: The market rally after the holiday is far-fetched
Back to the market after the holiday, the mainstream market of domestic polypropylene manufacturers powder market inertia rise, some enterprises also put pre-holiday orders, inventory pressure is not big. The trend of crude oil and futures is OK, the raw material propylene is highly supported, the inventory increase after the petrochemical festival is less than expected, and the merchants offer more temptations to rise. However, the downstream construction is insufficient and the pressure of weak demand makes the growth of powder far-fetched.
Shandong region for example: after the festival powder market has pushed up 200-300 yuan/ton to 8500-8600 yuan/ton. Raw propylene rose by 100 yuan/ton to 7,700-7,750 yuan/ton. North China low price drawing narrow finish in 8850-8900 yuan/ton. Overall, the profit margin of powder production enterprises is still acceptable, which also echoes the phenomenon that the enthusiasm of powder enterprises to start work before and after the Spring Festival is maintained at a relatively high level. At the same time, low price drawing and powder also maintain a reasonable price difference. Therefore, it is not difficult to understand, after the festival powder enterprises to test the mentality of high. However, about 50% of the downstream construction starts after the festival, and most factories have appropriate stocks for consumption before the festival, and market demand is weak to follow up, which greatly restricts the promotion of the powder market.
During the Spring Festival, the load of powder enterprises is basically in line with the pre-holiday plan, and the overall start is still maintained at more than 60%, although most of the order operations, but the overall spot supply of the market has increased significantly compared with previous years. Although the propylene market is running at a high and firm level after the holiday, the refinery inventory is also at a high level, and the mentality is not reduced. In terms of pellets, petrochemical inventories increased by nearly 200,000 tons compared with the pre-holiday, although lower than the previous market expectations, but limited by demand, the overall operation is also weak.
Limited by downstream demand, the post-holiday powder market has come to an end, and the spot transaction at this stage is more than 8500-8550 yuan/ton, and the firm offer is limited. In the future market, short-term demand is difficult to substantially follow up, and it is not easy to push up raw material propylene, and the current powder enterprises are more profitable. Zhongyu information is expected that the short-term powder market mainstream market narrow shock finishing, Shandong region as an example, before the middle of the market operation range is expected to be 8400-8600 yuan/ton.
