The evolution of polypropylene from "aristocracy" to "poor people"
I. The evolution from the "aristocracy" to the "poor"
PP pellets from the early market gourmet products, the development of everyone's resentment products, experienced the capacity and diversification of raw materials layers of transformation. The market price has also fallen from the previous high above 10,000 yuan to the current low price of 6000-6500 yuan/ton, only after 5-6 years. From each year of new capacity expansion, we will find that the data continues to evolve, which also confirms the tragedy of a sharp rise in supply and limited follow-up in demand.
II.The road is bumpy
Polypropylene diversification competition is gradually upgraded, production capacity continues to expand, and the downstream demand growth is in obvious contrast, resulting in the current market of homogenized products continuous surplus. Market participants' sales profit margin has gradually narrowed, and their expectations for the future market have declined. However, at present, the low price is close to the low in the heart of businesses, and the market price is often near the cost of manufacturers, and the space for the decline of ex-factory prices is narrowed again. Comprehensive analysis of advantages and disadvantages, it is expected that the recent market low may still fall to 6000 yuan/ton, high-end 6500-6600 yuan/ton, the short-term market is difficult to have a new breakthrough.
