Domestic PP: Inventory Declines, Futures Steady

Domestic petrochemical inventory: The inventory of polyolefins of the two oils is 800,000 tons, down 25,000 tons from yesterday.

Futures analysis: On June 17, PP2509 opened at 7118, the highest price was 7134, the lowest price was 7070, the position was 455542, the settlement price was 7107, yesterday's settlement was 7107, the increase was 0, the daily trading volume was 314038 lots, the deposited funds were 2.272 billion, and the capital outflow was 27.17 million.

Market mainstream quotes for wire drawing:

Domestic spot market analysis: Today, the domestic PP market as a whole showed a slight upward trend. Except for the stable market prices in the southwest region, the market prices in other regions were adjusted upward, with an increase of 10-30 yuan/ton. In terms of price: the mainstream price of domestic polypropylene ranged from 7010 to 7360 yuan/ton. The crude oil market's concerns about the geopolitical situation have eased, international oil prices have been under downward pressure, cost support has weakened, on-site maintenance equipment has resumed production and new production capacity has been released, supply pressure has become apparent, and downstream willingness to accept goods has weakened, and there is a certain resistance to high-priced raw materials, and high-priced transactions have shrunk significantly.

Analysis of the domestic futures market: The PP2509 contract opened with a small dive in the night session and then went up, then fell to the intraday low of 7070 and then rebounded; the futures price in the morning was consolidated upward; the futures price rose first and then fell in the afternoon.

As of today's afternoon close, the PP2509 contract fluctuated between 7070 and 7134 throughout the day, with a spread of 64, and the 09 contract reduced its position by 4930 lots, and the current position is 455542 lots.

Market Forecast: In terms of raw materials, in the short term, the crude oil market may be affected by 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, the total output of domestic PP enterprises has increased, refreshing the highest point in the past month, and the capacity utilization rate of PP units continues to rise. 

Combined with the steady release of new production, the supply of goods in the field may show an increasing trend. In terms of demand, there has been no substantial improvement in terminal demand, and downstream factories may maintain rigid demand purchases in the short term. 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 7153.00 on June 17, up 12, a range of 0.17%.

Guoneng auction statistics: Guoneng Coal Chemical's auction volume today was 2,821 tons, up 57.07% from yesterday; the transaction volume was 1,193 tons, down 24.78% from yesterday; the transaction rate was 42.29%, down 46.02% from yesterday.

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