1、 Price trend

According to the data monitored by the business agency, the domestic PP market weakened in the second half of March, and the spot price was mostly reduced. As of Monday, March 27, the main offer price of T30S by domestic producers and traders was about 6650.67 yuan / ton, down 5.45% from the average price on Monday, March 16.

2、 Cause analysis

Upstream: in terms of upstream propylene, recently affected by the game in the international crude oil market, the crude oil market has repeatedly been low. Due to the low production and inventory before propylene, the previous decline is not significant. At present, propylene inventory is not much, and the operating rate is not high, so the manufacturer’s delivery pressure is small. The downstream isopropanol is one of the raw materials of disinfectant, which has a positive impact on propylene due to the impact of public health events. But from the results, the boost is limited. In addition, the profit space of other downstream factories is narrow, the industry is generally short, and the trend of follow-up is also obvious. It is expected that the price of propylene will start to stabilize in the near future and may decline in the later period;

Product: at present, the domestic PP market is weak, and the wait-and-see atmosphere is still heavy. The factory price of large petrochemical plants has been lowered, and traders have declined. PP downstream plant operating rate is average, inquiry atmosphere is low, demand follow-up is weak. The business confidence is not strong, the stock is high, the end of the month reduces the position to let the profit sale. The overall performance of futures is also short, which is obvious with falling sentiment.

3、 Future forecast

PP analysts of the business club believe that the domestic PP spot market continued to be weak in the second half of March, the upstream propylene price was not strong, and the support for the cost side of PP was not good. The return rate of downstream factories needs to be further improved. In terms of demand, the order follow-up is not timely, and small orders are mainly concluded. Petrochemical plant inventory pressure is large, the end of the month to complete the task. PP market is expected to continue to weaken in the near future.