China PP Market: Inventory & Price Outlook
Domestic petrochemical inventory: The inventory of polyolefins of the two oils is 825,000 tons, an increase of 15,000 tons from last week.
Futures analysis: On June 16, PP2509 opened at 7103, the highest price was 7145, the lowest price was 7064, the position was 460472, the settlement price was 7107, yesterday's settlement was 7052, the increase was 55, the daily trading volume was 398212 lots, the deposited funds were 2.299 billion, and the capital inflow was 35.26 million.
Market mainstream quotes for wire drawing:
Domestic spot market analysis: Today, the domestic PP market as a whole continued to rise. Except for the stable market prices in the northwest region, the market prices in other regions rose across the board, ranging from 50 to 100 yuan/ton. In terms of price: the mainstream price of domestic polypropylene ranged from 7000 to 7330 yuan/ton.
The cost side of the crude oil market was affected by the tense geopolitical situation in the Middle East, and the oil price rose sharply, which strengthened the support of the cost side and led to a slight upward shift in the price center of the PP market. However, the supply and demand fundamentals in the market were still stagnant, and the demand side was still tepid.
Analysis of the domestic futures market: The night trading price of the PP2509 contract weakened slightly and jumped up at the end of the trading; it fell first and then rose after opening in the morning, reaching the intraday relative high of 7145 and then consolidating in the range; the price of the futures contract was sideways in a small range until the end of the afternoon. As of today's afternoon closing, the PP2509 contract fluctuated in the range of 7064-7145 throughout the day, with a price difference of 81.09 contracts increased by 4247 lots, and the current position was 460472 lots.
Market Forecast: In terms of raw materials, in the short term, the crude oil market may be affected by the instability of the geopolitical situation, the continuation of the US sanctions policy on oil-producing countries, the US summer travel peak season and other favorable factors, as well as OPEC+'s maintenance of production increase and the poor global economy. It is also necessary to pay attention to the impact of related changes on international oil prices.
In terms of supply, in the short term, it is expected that the maintenance and restart of PP units on the site will coexist, but the plan for the release of new production capacity is steadily advancing, and the supply of goods on the site may increase.
In terms of demand, some downstream factories may be less motivated to replenish stocks due to the rise in raw material PP prices, and the downstream is in the seasonal off-season, so it is difficult to see bright spots on the demand side. Overall, it is expected that the polypropylene market may be in a range in the short term.
Domestic PP Index: According to Tu Duoduo data, the domestic PP spot index was 7141.00 on June 16, up 29, a range of 0.41%.
Guoneng auction statistics: Guoneng Coal Chemical's auction volume today was 1,796 tons, up 19.65% from yesterday; the transaction volume was 1,586 tons, up 22.19% from yesterday; the transaction rate was 88.31%, up 1.83% from yesterday.
Our platform connects hundreds of verified Chinese chemical suppliers with buyers worldwide, promoting transparent transactions, better business opportunities, and high-value partnerships. Whether you are looking for bulk commodities, specialty chemicals, or customized procurement services, TDD-Global is trustworthy to be your fist choice.
