Recent Domestic PP Market
Domestic Petrochemical Inventories: Polyolefin inventories of the two oil-based commodities reached 795,000 tons, down 20,000 tons from yesterday.
Futures Analysis: The PP2601 contract's night trading price on August 13th showed frequent, narrow fluctuations. Prices continued to fluctuate after the morning opening, initially rising before falling. In the afternoon, prices fluctuated downward.
Opening positions for the 01 contract increased by 24,541 lots. Opening price: 7128, High: 7128, Low: 7105, with a spread of 23. Opening volume: 329,308. Settlement price: 7116. Yesterday's settlement price: 7126, a decrease of 10. Daily trading volume: 163,894 lots. Deposited funds: 1.638 billion yuan. Inflow: 118 million yuan.
Mainstream Market Quotes for Wire Drawing:
Domestic Spot Market Analysis: Today, the domestic PP market showed mixed gains and losses. Market prices remained stable only in North China. Prices in East and South China declined slightly, while those in Southwest and Northwest China rose by 10-30 yuan/ton.
Regarding prices, the mainstream domestic polypropylene price ranged from 6,960 to 7,170 yuan/ton. The current PP market is characterized by stable prices and low transaction activity. Coupled with the traditional off-season for downstream industries, overall market liquidity is constrained. Manufacturers are maintaining their existing pricing strategies, keeping ex-factory prices stable and not yet implementing price adjustments to influence market dynamics.
Within the distribution chain, traders prioritize destocking. Amidst weak end-user purchasing momentum, they are adopting flexible pricing strategies to accelerate inventory turnover and mitigate the potential risks of stockpiling.
The off-season is significantly impacting demand, limiting downstream companies' restocking efforts to meet rigid demand requirements and lacking the incentive to proactively increase inventory.
End-user factory operating rates remain low, resulting in a corresponding slowdown in raw material procurement and a generally subdued purchasing sentiment. This has led to a subdued market sentiment and hindered the release of large orders.
Market Forecast: Regarding crude oil, the continuation of US sanctions against oil-producing countries is supporting the market. However, expectations of easing geopolitical tensions and the expected increase in crude oil supply due to OPEC+ production increases, coupled with a weakening global economy that is suppressing crude oil demand, have created a complex landscape of negative factors.
Within the production sector, PE plant operations remain unchanged, and inventories of polyolefins from the two oil majors continue to decline, providing some relief from supply-side pressure. In the domestic market, polypropylene (PP) quotes in US dollars remain generally stable, while market prices are showing a weak and consolidating trend. Due to insufficient demand-side follow-up, traders' mainstream quotes remain stable, leaving room for negotiation in actual transactions.
Furthermore, the rollover of the main futures contract has intensified price volatility, leading to a decrease in market stability and further increasing market uncertainty. Overall, in the short term, the PP market is likely to continue to fluctuate and weaken, influenced by sluggish demand and market volatility. However, as the "Golden September and Silver October" peak season progresses, if demand exceeds expectations and coupled with the continued reduction of PP and oil majors inventories, the market may stabilize and even rebound.
Domestic PP Index: According to Tuduoduo data, the domestic PP spot index was 7058.00 on August 13, up 14 points, or 0.20%.
GuoNeng Auction Statistics: GuoNeng Coal Chemical's auction volume today was 1569 tons, a decrease of 31.69% from yesterday; 1162 tons were sold, a decrease of 39.92% from yesterday, with a fill rate of 74.06%, a decrease of 10.14% from yesterday.
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