Analysis of the trend of domestic polypropylene market (June 18-21)

Business News, June 25th, one, manufacturers dynamic PP

There was no significant change in PP petrochemical maintenance companies this week. Except for Zhongyuan Petrochemical's new plant feeding but no formal products, the maintenance of Datang and Ning coal currently has a positive effect on North China market supply. In the third quarter of the market, there is no reduction in maintenance companies, and the impact on the market is still there. During the week, CNPC’s price fluctuations were more volatile, with prices dropping 100-150 yuan/ton in the northeastern China and 50-200 yuan/ton in the south-western South China. Petrochemical prices did not fluctuate significantly. According to analysts in the market, given the recent decline in crude oil's impact on the market mentality, businesses are cautious. Due to relatively few sources of goods, downstream factories are pursuing on-demand purchases. Businesses are now following petrochemical and China National Oil's quotation to overstate speculation. It is expected that there will be corresponding price adjustments in South China South China Petroleum Region next week, with petrochemical pricing and sales as the mainstay.

Second, the market trend this week, the PP market speculation over one hundred yuan, drawing up is particularly evident, the increase in copolymerization of more than 50 yuan. Analysis of this round of market growth, mainly due to petrochemical limited billing, resulting in some of the market's scarce supply, plus petrochemical, China Oil Tanker increased the price, the merchants are subject to cost control only with the hype over hype. However, from the analysis of supply and demand structure, the market is still lacking favorable support for demand, and it is heard that downstream factories have started 2 to 30% more. Datang International Toronto's 460,000-ton/year polypropylene plant is about to drive at the end of June, when low-cost sources in the North China market will reproduce the market, and the oversupply situation will further manifest itself. From an economic perspective, although the market's worries about Greece's exit from the euro zone have eased, the global economic sluggishness is a foregone conclusion and it is difficult to repair in the short term. Therefore, the export volume of domestic plastic products will continue to remain low, and it is difficult for the downstream factories to start construction. Change, so the current market rally is purely imaginary, it is difficult to sustain.

North China market: Sinopec North China PP pricing sales, Jinan refinery T36F reported 10,300 yuan / ton, Qilu EPS30R reported 10,400 yuan / ton, Qingdao Petrochemical T30S reported 10,400 yuan / ton, Zhongsha 500N reported 10,500 yuan / ton; PetroChina North China PP listed sales , Daqing T38F reported 10,700 yuan / ton, Dushanzi EPS30R reported 10,850 yuan / ton. The price of PP in the North China market rose slightly, and the reference price in the Beijing area was: T30S Daqing Refining & Chemicals at 10450-10500 yuan/ton; Yanshan K8303 at 10550-10600 yuan/ton; Yanshan Petrochemical PPR4220(pipes) at 13,000 yuan/ton, Yanshan Petrochemical K7726H In 10600-10750 yuan / ton, Yanshan Petrochemical B8101 at 11,500 yuan / ton, Tianjin United EPS30R at 10,400 yuan / ton.

East China Market: Sinopec Huadong PP pricing sales, Zhenhai T30S reported 10,550 yuan / ton, Yangtze F401 reported 10,600 yuan / ton; PetroChina Huadong PP listed sales, Daqing drawing reported 10,700 yuan / ton, V30G reported 10,700 yuan / ton. The price of PP in East China market fluctuates slightly. Reference quoted in Shanghai: Shanghai Petrochemical T300 reported at around RMB 10,800/ton, Shanghai SECCO S1003 at around RMB 10,800/ton, Shanghai Petrochemical M700R at RMB 10,950/ton; Shanghai Petrochemical’s Y2600T at RMB 10,900/ T; Shanghai Petrochemical M2600R at 10,950 yuan / ton, Shanghai Petrochemical M180R at 10,700 yuan / ton; Shanghai Petrochemical F800E at 11,600 yuan /

Ton.

South China Market: Sinopec PP sales pricing in South China, Fulian T30S reported 10,650 yuan / ton, 1104K reported 10,550 yuan / ton, Maoming EPS30R reported 10,500 yuan / ton; PetroChina South China PP listed sales, Daqing T30S reported 10,750 yuan / ton, Dushanzi K8003 Reported 10,600 yuan / ton. The price of PP in the South China market rose slightly. The reference price in Guangzhou was: Z30 Dongxing T30S at 10850 yuan/ton, Maoming PPH-T03 at 10950-11000 yuan/ton, Maoming Petrochemical EPS30R at 10600-10650 yuan/ton, Zhanjiang Petrochemical V30G at 10850 yuan. /Ton.

Third, the market outlook predicts that Sinopec and PetroChina will set market costs at a locked-in price, and the middlemen will have no choice but to take advantage of the trend. The negative pressure still comes from downstream factories and the global economy. At present, the market is precisely the game between upstream costs and downstream demand. It is expected that petrochemical policies will be more stable next week. Business analyst Xue Jinlei expects that petrochemical manufacturers will remain stable near the end of next week, and there may be a slight increase in prices at the beginning of next month.