Domestic PP: Inventory Drop, Futures Down
Domestic petrochemical inventory: The inventory of polyolefins of the two oils is 765,000 tons, down 15,000 tons from yesterday.
Futures analysis: On June 25, PP2509 opened at 7080, the highest price was 7085, the lowest price was 7054, the position was 424343, the settlement price was 7070, yesterday's settlement was 7114, the decline was 44, the daily trading volume was 268911 lots, the deposited funds were 2.104 billion, and the capital outflow was 116 million.
Market mainstream quotes for wire drawing:
Domestic spot market analysis: Today, the domestic PP market was overall weak, except for the stable market prices in East China and Northwest China, the market prices in other regions continued to decline, with a decline of 20-70 yuan/ton. In terms of price: the mainstream price of domestic polypropylene ranged from 7060 to 7350 yuan/ton.
The geopolitical situation has eased, and the crude oil market has reduced its concerns about supply risks. In addition, due to the poor performance of some US economic data, international oil prices continued to fall, and the cost support for the PP market has weakened. In addition, the release of new production capacity in the market and the impact of the off-season demand have led to cautious downstream procurement, and traders mainly made concessions for shipments, and the market mentality was bearish.
Analysis of the domestic futures market: The PP2509 contract fluctuated narrowly after the opening of the night market; the futures price fell slightly in the morning and fluctuated at a relatively low level during the day, then fluctuated upward and consolidated in the late trading range; the futures price in the afternoon was sideways in a small range until the end.
As of today's afternoon closing, the PP2509 contract fluctuated in the range of 7054-7085 throughout the day, with a spread of 31.09 contracts reduced positions by 24092 lots, and the current position is 424343 lots.
Market Forecast: In terms of raw materials, in the short term, the crude oil market may be affected by favorable factors such as the traditional peak season for consumption in the United States, as well as unfavorable factors such as the geopolitical situation, OPEC+ maintaining its position of increasing production, 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, the planned shutdown and maintenance of PP units such as Dushanzi Petrochemical and Yanchang Coal may alleviate supply pressure, but it is difficult to give a strong boost to the market.
In terms of demand, it is expected that due to weather factors such as high temperatures in summer and rainfall in the south, downstream factories will have poor enthusiasm for stocking, and overall demand will be weak in the traditional off-season. Overall, the polypropylene market is expected to be weak in the short term.
Domestic PP Index: According to Tu Duoduo data, the domestic PP spot index was 7167.00 on June 25, down 14, a drop of 0.19%.
Guoneng auction statistics: Guoneng Coal Chemical's auction volume today was 1,366 tons, down 61.6% from yesterday; the transaction volume was 917 tons, up 36.26% from yesterday; the transaction rate was 67.13%, up 48.21% from yesterday.
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