Domestic PP: Stock Slide & Futures Gain
Domestic petrochemical inventory: The inventory of polyolefins of the two oils is 740,000 tons, down 20,000 tons from yesterday.
Futures analysis: On June 20, PP2509 opened at 7280, the highest price was 7306, the lowest price was 7229, the position was 494883, the settlement price was 7268, yesterday's settlement was 7249, the increase was 19, the daily trading volume was 375574 lots, the deposited funds were 2.509 billion, and the capital inflow was 26.47 million.
Market mainstream quotes for wire drawing:
Domestic spot market analysis: Today, the domestic PP market as a whole showed a trend of stable and strong consolidation. Among them, the market prices in the southwest and northwest regions remained stable, and the market prices in other regions were slightly upward, with an increase of 10-50 yuan/ton. In terms of price: the mainstream price of domestic polypropylene ranged from 7110 to 7380 yuan/ton.
At present, the relevant impact of the geopolitical situation on the cost side still exists. International oil prices continue to rise, and the cost support of the PP market is strong. However, it is currently in the off-season for PP demand, and new orders are weak to follow up. The acceptance of high-priced sources is limited, and transactions are mostly small orders.
Analysis of the domestic futures market: The night market price of the PP2509 contract fell first and then rose, and fell back at the end of the trading day; it fell slightly after the opening of the morning trading, and then rose first and then fell; the price showed a "U" trend in the afternoon. As of today's afternoon closing, the PP2509 contract fluctuated in the range of 7229-7306 throughout the day, with a spread of 77.09 contracts increased by 7376 lots, and the current position was 494883 lots.
Forecast for the future market: In terms of raw materials, in the short term, the crude oil market may be affected by the instability of the geopolitical situation, the peak travel season in the summer in the United States, and the negative factors such as OPEC+ maintaining its position to increase production and the poor global economy. It is also necessary to pay attention to the relevant impact of related changes on international oil prices. On the supply side, it is expected that the supply of goods in the market will continue to grow next week.
The resumption of production of previously parked equipment will continue to advance, and enterprises are more motivated to start production. The capacity utilization rate may further increase, which will drive an increase in production. On the demand side, PP demand may remain weak next week.
Although some companies may replenish inventory in small quantities to cope with subsequent production, it is difficult to change the overall sluggish demand trend, and the driving force for the PP market is weak. Overall, it is expected that the polypropylene market may be in a range in the short term.
Domestic PP Index: According to Tuduoduo data, the domestic PP spot index was 7243.00 on June 20, up 11, a range of 0.15%.
Guoneng auction statistics: Guoneng Coal Chemical's auction volume today was 2,617 tons, down 18.22% from yesterday; the transaction volume was 1,113 tons, down 47.8% from yesterday, and the transaction rate was 42.53%, down 24.1% from yesterday.
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